Doug Kass Summarizes His Bearishness

By on August 14, 2009

Doug Kass argues that the bulls have it all wrong, in that this cycle is different than ones in the past (1970’s and 1980’s). According to Kass, there is a limited life for fiscal stimulus and corporate cost cutting (which will hurt the lifeblood of the U.S. economy – the consumer). He also believes commercial real estate is just entered its cyclical downturn and there remains a severe debt overhang in the economy.

Kass mentions a couple of other reasons for his negativity which can be found at the source below.

Kass cleverly states with regards to stocks, “the margin of safety is becoming ever more thin as the enemy of the rational buyer — namely, optimism — reaches new heights.”


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