September 19, 2017

Stocks, Real Estate and Bonds are all inflated in price

"Former  Fed Chairman Ben Bernanke likely didn't think about this when he lowered rates to zero - and current Fed Chairman Janet Yellen is probably also not putting much weight into this factor as she guides monetary policy in the U.S. So far we have only seen the upside of low interest rates. Its like living in the Florida Keys - its all sunshine until the storm hits and then its indescribable devastation."

via twitter

September 11, 2017

Markets not making any sense

"To me, markets, sectors and individual stocks ultimately should be evaluated on a reward vs. risk basis, gauging upside versus downside and not through a binary and often dogmatic buy-or-sell basis.

Today I remain astounded how so many are self-confident in a bullish view.....  Let's not forget that many of those bulls took retail and institutional lemmings over the investing cliff in 2007-09 as they extrapolated economic and profit growth without looking to see how insecure the foundation of growth really was." - via RealClearMarkets

September 7, 2017

Gary Cohn not qualified for Fed Chairman but may not matter anyways

Who might replace Janet Yellen ?

"Gary Cohn is not well suited to be Fed Chairman. There is nothing in his academic or biz background (BA, American University and GS executive) that qualifies him to be Chair/Fed."

On reports that President Trump unlikely to nominate Gary Cohn for Fed position.

"Dow Jones reports Gary Cohn not being considered for Fed chair. Raise your hands if you care who is the next Fed Chair? I thought so."

via twitter

August 30, 2017

Volatility is an opportunity for traders who understand value

"I recently concluded, based on my analysis of the S&P 500 Index, that the potential downside exceeds the potential upside by a factor of four times. Though stock prices were trending higher and as recently as a week ago were at all-time highs, my view of the very unattractive reward vs. risk and the widening of stock prices relative to intrinsic value caused me to be more aggressive and anticipatory rather than waiting for a price trend change; it is the essence of my approach to trading and investing." - Doug Kass