Doug Kass Says Market Has Made Low For Year

By on July 7, 2010

Doug Kass, Seabreeze Partners, says the economy will not be as weak as many people think and the market is close to the bottom for the year.

“If you look at the June ISM non-manufacturing index,” he says, “the employment component dropped only marginally and is consistent with respectable payroll growth. And the employment trend index was up for the 11th straight month in a row and it always leads payroll growth. The index is up 5 points above it’s long term average.”

On top of that, “high yield bond rates were down, 2-year swap spreads were down, 3-month LIBOR was down and the euro was up.”

All positive signs, Kass says.

SMA Comment: It will be interesting to see if Kass can call the bottom two years in a row. Count me skeptical.

Source: CNBC
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