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."