Seabreeze Partners portfolio manager Doug Kass has been sounding the alarm bells on the stock market for a while.
In his 2013 outlook published on January 9, Kass warned that the market would make its high for 2013 in the first two weeks of January.
That, of course, didn’t happen, as stocks have continued to grind higher. Now, more and more people are talking about a sell-off than at any point during this rally that started in November, due to increasing signs of excessive bullishness among investors.
Kass was just on CNBC, and he made some rather dramatic comments.
“I’m getting the ‘summer of 1987 feeling’ in the U.S. equity market,” Kass told CNBC, “which means we’re headed for a sharp fall.”
For those who don’t remember the summer of 1987, here is what it looked like:
Photo: Wikimedia Commons
Kass also said that he thinks “fair market value of the S&P 500 is roughly 80 or 90 points lower.”
This view has Kass at his highest net short position of the year.
Watch the full appearance below:
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