Doug Kass called a market bottom on March 2. He says events now confirm that and his watch list of twelve economic indicators shows things are improving.
A classical wall of worry is being reinforced by an overwhelming consensus that the recent advance was a bear market rally. Moreover, the negative “chatter,” as Jim “El Capitan” Cramer describes it, appears loosely constructed and fails to credibly argue against the salutary effect that $4 trillion of stimulus will have on the domestic economy.
Kass called the market crash early, shorted Warren Buffett’s Berkshire Hathaway successfully when many thought doing so was insane, and in the years I’ve been reading him, seems plenty savvy.
He says the current mood of pessimism in the markets is astoundingly gloomy andÂ unwarranted. I would agree, and would expand that to include society at large. Some commentators appear to be trying to outdo each other with predictions of how dire things will become and how doomed we are. If we don’t end up in caves eating worms (and we won’t), they’re going to look more than a bit ridiculous.