Doug Kass Continues To Think The March Low Was The Market Bottom
Doug Kass who famously called the nadir in March, continues to think his prediction is correct. Seabreeze Partners' Doug Kass wrote a short piece for Real Money describing why he thinks we may have reached a generational market bottom in March.
Doug's comments are below.
- I continue to believe that the early March low represented a yearly and, quite possibly, a generational market bottom.
- The mustard seeds for the economy and the U.S. stock market have begun to take root.
- The rate of change in 10 of 12 factors in my watch list are improving.
Below are a few of the conditions where Kass gives a grade on each condition from February and he updates them today.
- Bank balance sheets must be recapitalized. (Grades the package a B+, up from a D+ only two weeks ago.)
- Financial stocks' performance must improve. (Grade B+, up from a D.)
- Credit spreads and credit availability must improve. (Grade D, flat from two weeks ago.)
- We need evidence of more favorable reactions to disappointing earnings and weak guidance. Kass was encouraged by the reaction to the poor results from companies like FedEx (NYSE: FDX), General Electric (NYSE: GE) and Freeport-McMoRan (NYSE: FCX). (Grade B+, up from a C+.)
- Credit spreads and credit availability must improve. (Grade D, flat from two weeks ago.)
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