August 14, 2017

Doug Kass expands short exposure to the market

The S&P 500 Composite and Dow Jones Industrial indexes set new all-time highs last week before rolling over. For the week, the S&P 500 gave up 1.4% led by resources and financials. The financial sector, while still outperforming the broad market year-to-date, is facing headwinds from lower inflation and bond yields. 

Doug Kass thinks the markets may go lower,

"I continue to maintain a historically high net short exposure because I believe we face numerous political, geopolitical, economic and market outcomes that could end badly -- very badly."

"My perception of the market's reward is declining while the market's risk is increasing, and in my view the downside may be a much as four times the upside over the next 12 months."


August 10, 2017

Trading Directional Options can hurt your wallet

August 8, 2017

Is there any market commentator bearish on the markets ?

August 7, 2017

Apple stock is fully priced | Short AAPL

Shares of Apple has surged after reporting earnings last week, with strong top and bottom line beat, and just as strong guidance, despite a small iPhone sales miss in the current quarter.

Apple sold 40.0 million iPhones, just below the 40.1 million expected, 1.5% higher than a year ago, despite also missing on ASPs (which came in at $606, below the $628 expected) while Chinese revenues disappointed once again declining by 9.5% Y/Y. However, the silver lining, and what most appear to be focused on was Apple's strong forecast, with the company forecasting $49 billion to $52 billion in revenue for the upcoming, critical quarter, a range that was well above sell-side consensus of $49.12 billion, suggesting Apple is quite optimistic about the upcoming iPhone 8 product launch.

Also helping AAPL this quarter was an unexpected boost from iPad sales, with Apple selling 11.4 million units in the quarter, 15% higher than the 10 million it sold a year ago, and well above expectations. 

Doug Kass thinks that Apple is priced to perfection, 
"I believe the shares of Apple are fully priced, at best, as I think the earnings growth rate for the company is less than the consensus views it. But mine continues to be a minority view."