Forget stocks, famed market timer Doug Kass says investors should be playing the bond market – from the short side!
In fact, Kass is so bearish on bonds , he says selling them short may be the trade of the decade.
Kass, who is president of Seabreeze Partners and a CNBC Contributor, doesn’t tend to be terribly dramatic, nor does he often invoke the use of superlatives, so we were intrigued – especially when he told us his short position was the largest position he has ever taken in his partnership.
“Not only has the stock market gotten far too negative on US economic growth,” he says, “so has the bond market.” And as a result, bonds are mispriced - they're far too expensive.
And that's happened because investors are so skittish that “good news is being ignored and bad news is being amplified.”
However, if you parse through all the economic data Kass says you’ll find data point after data point suggesting the recovery is getting incrementally stronger.
To support his thesis, Kass points to the latest numbers from the Labor Department released Tuesday which showed U.S. companies in March posted the highest number of job openings in nearly four years.