Doug Kass: The Scale Has Tipped to the Bullish Side

By on August 24, 2010

Doug Kass believes the stock market has already discounted a double dip recession. He makes a lucid argument as to why the market can make forward progress despite the glum economic outlook:

As I have written, I expect the S&P 500 to trade between 1020 and 1150 (roughly between 11x and 13x 2011 S&P EPS forecasts) — “home, home on the range” in a Roy Rogers Market.

While we can never have such precision, my forecast taken literally (at the current 1075 level) indicates that there is approximately 55 S&P points of risk and about 75 S&P points of upside. In other words, the scale has now tipped back to the bullish side.

Kass expounds much more at the source link below and remarks that, “Stocks Are Extraordinarily Cheap Against Interest Rates.”

Source: Seabreeze Partners
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