Doug Kass of Seabreeze Partners Management stopped by the Fast Money set recently. Kass is known for his shrewd insights into the market. He identified the market top in 2008 and called the bottom in 2009. Kass is fearful about the stock market. Kass feels that the market is overvalued on a fundamental and technical basis. He thinks that corporate earnings are not going to justify the current valuation of many stocks. He believes that second quarter earnings and a weak dollar are bad news for economic activity. It seems that Kass seems like commodities (oil, gold, metals) will continue their upward rise as long as the dollar is weak.
I’ve really cut down my equity exposure after this rally. I told myself if my 401K ever hits +12% this year again, I’d be taking profits after the decline this summer. Hence, this is what I’ve been doing!
Smart move. It’s better to take something off the table than to to be greedy and have nothing to take!
A pullback would be nice. It would allow me to make my next stock purchases cheaper, and get a better yield with my money.
A slight pullback would give me a chance to add to my positions. I don’t wanta major drop though!
I just liquidated a large percent of our VNQ (REIT etf) holdings, and it was very difficult (this was one with a very nice gain), but with a PE for the fund in the high 30′s I could not justify hanging on to the entire position.
VNQ has ahd a nice run up. It’s very close to its 52 week high. I think that was a smart move Barb. It’s always better to walk away with a nice gain than to hold onto an investment that has gotten too expensive.