With the market reeling from the early release of the stress test results, the Fast Money pros turned to Doug Kass for his latest insights.Widely followed for his ability to time the market, Kass is president of Seabreeze Partners, a CNBC Contributor and a contributor to the Street.com, Jim Cramer’s Real Money Pro web site.
And essentially he tells the gang to sell banks and short bonds.
BanksAlthough at least 15 big banks passed the Fed’s stress test, Kass’ outlook is far from optimistic. He tells us rather succinctly, “I’d be inclined to sell out of the entire group – done.
With the XLF over 20% higher over the past 3 months, Kass just doesn’t see a whole lot more upside. In fact he thinks the next catalyst for the sector could be negative.“My concern with banks over the next couple of months is economics,” he says. “There’s increasing economic ambiguity both domestically and abroad.”
Looking at the bond market, Kass thinks the long end of the curve is about to make a major move.
“I think there’s 100 basis points to the upside in the yields in the 10-year and 30-year,” he says.Ahead of the broadcast, Kass cited the following catalysts to support his thesis.Page 1 of 6 | Next Page