Kass Would Buy Weakness On a 25bp Cut
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Earlier today, Doug Kass, at RealMoney.com, revealed his trading strategy for today, based on the upcoming Fed rate decision (expected at 2:15PM).
Kass takes a contrarian view. He said he will be buying weakness if the fed disappoints Wall Street and only cuts 25 basis points. He would sell strength if the fed delivers on a 50 basis point cut.
His logic is that if the Fed cuts just 25bp, things in the economy may not be that bad. If they cut the 50 bp, it may signal more trouble ahead.
We are highlighting Kass' call because he has successfully traded the recent market volatility, both long and short.
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