Doug Kass of Seabreeze Partners has issued a “mea culpa” for being too bearish. Kass admits that over the past 12 months he has been far too cautious and dogmatic in his “ursine” outlook, saying that the economic recovery and market rally will be short lived.
From The Street:
“I moved too far off the reservation and stuck to my views even as cyclical economic conditions changed. (One doesn’t have to look much beyond the ISM strength to support the statement that domestic growth has improved markedly.)
In support of my bearish investment view, I offered what I thought were a series of logical arguments on why my secular concerns would produce nontraditional challenges to the notion of a smooth and self-sustaining economic recovery that was the foundation of the bullish cabal’s baseline case.
The fact is, the cyclical recovery in corporate profits has been so strong as to offset some of my concerns.”
Kass, who called the market bottom back in March 2008, still says he’s not a bull, insisting that the economy still faces “nontraditional headwinds” such as fiscal imbalances, excess housing inventory or structural increase in unemployment, which according to him, “are ever-present and are value-destructive and must be monitored closely as to their effect on the cyclical recovery.”
Doug, you’re forgiven. Now, what about Rosie?!!