Stocks, Dollar, Buffett & Tiger: Kass' 20 Predictions for 2010
Buffett to Step Down, Tiger to Come Back and More...
12. Warren Buffett steps down.
“With the Burlington Northern acquisition, the Oracle has completed his canvas and there is very little for him to do," said Kass. "And he steps down, and as you know he’s been testing out some outside managers as his CIO.”
13. Insider trading charges expand.
14. The SEC launches an assault on mutual fund expenses.
Kass predicts that the SEC restricts 12b-1 mutual fund fees and in response to the proposal, asset management stocks crater.
15. The SEC restricts short-selling.
"All short-selling," he said. "We get a double dip in the economy—stocks start moving lower, and they panic."
16. More hedge fund tumult emerges.
17. Pandit is out and Cohen is in at Citigroup.
"Pandit will be out—he's doing a horrible job—he's slow to react to the demise of the credit markets and my surprise is [former Shearson Lehman Brothers Chairman] Peter Cohen replaces him." Kass also predicts that Sandy Weill rejoins Citigroup as a senior consultant.
18. A weakened Republican party is in disarray.
Sarah Palin announces that she has separated from her husband, leaving the Republican party firmly in the hands of former Massachusetts Governor Mitt Romney, said Kass. An improving economy in early 2010 elevates President Obama's popularity back to pre-inauguration levels, and, despite the market's second-quarter decline, the country comes together after the Middle East conflict, producing a tidal wave of populism that moves ever more dramatically in legislation and spirit.
19. Tiger Woods makes a comeback.
Tiger Woods and his wife reconcile in early 2010, and he will return earlier than expected to the PGA Tour, predicts Kass. After announcing that his wife is pregnant with their third child, both the PGA Tour's and Tiger Woods' popularity rise to record levels, and the golfer signs a series of new commercial contracts that insure him a record $150 million of endorsement income in 2011, he added.
20. The New York Yankees are sold to a Jack Welch-led investor group.
The Steinbrenner family decides, for estate purposes, to sell the New York Yankees to a group headed by former General Electric Chairman Jack Welch.
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No immediate information was available for Kass or his firm.