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Doug Kass: Soon Time to 'Re-Risk'

Famed strategist Douglas Kass said Friday he is getting long the market and bullish financial names.

"I think it's approaching a time to re-risk," said Kass, founder and president of Seabreeze Partners, adding that the Standard & Poor's 500 Index is contained between the range of 1020 and 1150. "If the market continues to decline, I will expand the long book further."

Kass said he bought "a lot" of Citigroup and Bank of America Friday. He also likes JPMorgan Chase as a core position because he thinks its credit-quality story is the "most compelling." The strategist said JPM faces up to 8 months of reserve releases from the loan-loss provision.

The money manager said the market's upside is paralyzed by "tax and regulatory" traps. He thinks the series of economic data out this week increases the possibility that there will be some relief from that "logjam."

It does seem Kass has a knack for reading the market. Less than a week before the S&P 500 hit a generational low of 676 on March 9, 2009, Kass went on CNBC and predicted the bottom. On July 6, 2010, he said the market had made its lows for the year and so far, that has also proved to be true.


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Trader disclosures for Aug. 20, 2010:

Guy Adami
Adami owns (AGU)
Adami owns (BTU)
Adami owns (NUE)
Adami owns (C)
Adami owns (GS)
Adami owns (INTC)
Adami owns (MSFT)
Adami’s wife works at Merck

Karen Finerman
Finerman owns (AAPL)
Finerman & Finerman's firm owns (BAC)
Finerman’s firm owns (KFT)
Finerman’s firm owns (HPQ)
Finerman’s firm owns (JCG)
Finerman & Finerman's firm owns (JPM)
Finerman’s firm owns (POT)
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman’s firm owns S&P 500 puts
Finerman’s firm owns Russell 2000 puts

Jon Najarian
***No Disclosures***

Steve Grasso
Grasso owns (ASTM)
Grasso owns (BA)
Grasso owns (BAC)
Grasso owns (C)
Grasso owns (CSCO)
Grasso owns (JPM)
Grasso owns (LPX)
Grasso owns (MO)
Grasso owns (MOT)
Grasso owns (NDAQ)
Grasso owns (PFE)
Grasso owns (PRST)

Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

Patty Edwards
Patty Edwards owns (PM)
Patty Edwards owns (PM) for clients
Patty Edwards owns (INTC) for clients
Patty Edwards owns (HPQ) for clients
Patty Edwards owns (XOM) for clients
Patty Edwards owns (COP) for clients
Patty Edwards owns (CVX) for clients
Patty Edwards owns (AKAM) for clients
Patty Edwards owns (GE) for clients
Patty Edwards owns (AA) for clients
Patty Edwards owns (ALK) for clients
Patty Edwards owns (LEG) for clients

Doug Kass
***No Disclosures***

Jordan Rohan
Stifel, Nicolaus & Company, Inc. makes a market in the securities of Google Inc.
Stifel, Nicolaus & Company, Inc. or an affiliate managed or co-managed a public offering of securities for Google Inc. in the past 12 months.
Google Inc. is provided with investment banking services by Stifel, Nicolaus & Company, Inc. or was provided with investment banking services by Stifel Nicolaus or an affiliate within the past 12 months.
Google Inc. is a client of Stifel, Nicolaus & Company, Inc. or an affiliate or was a client of Stifel Nicolaus or an affiliate within the past 12 months.
Stifel, Nicolaus & Company, Inc. expects to receive or intends to seek compensation for investment banking services from Google Inc. in the next 3 months.
Stifel, Nicolaus & Company, Inc or an affiliate has received compensation for investment banking services from Google Inc. in the past 12 months

Michael Block
***No Disclosures***

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