July 8, 2013

Doug Kass: Stock market warning of Bumpy ride

I (prematurely) cautioned in January-February (and in the ensuing months) that this market day would come -- a day in which the liquidity, so necessary to recover the world's economies from the Great Decession, would come to an end. Or, at the very least, I suggested that its ending would begin to be discounted well in advance of the triggering event.

I worried that a period lies ahead in which both stock and bond prices fall at the same time, breaking the correlation of the last few years.