DOUG KASS: Four Reasons The Stock Market Is Ready To Surge

Doug Kass

Earlier we mentioned a tweet from Doug Kass where he said that “frankly” the bears might be screwed.

The reason? It was all looking bad for the market a few days ago, but suddenly the bearish momentum has stopped. And if the bearish momentum can’t continue in this environment, then there’s really no hope for those on the short-side.

In a post up at RealMoney, Kass identifies 4 things that have changed.

  1. Overall earnings and forward guidance were far better than many of the pessimists expected.
  2. Apple remains a pivotal stock and an important contributor to aggregate corporate profits, and its blowout results cannot be overstated in consequence and on investor sentiment.
  3. The general concerns regarding domestic economic weakness might have been overstated — my baseline expectation of a muddle-through 2% real GDP trajectory still seems likely.
  4. Lower market prices began to discount the known economic and market headwinds and threats.

The full (gated) RealMoney post is here >

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