It ain’t easy to find a big bull these days, but as the saying goes, ‘seek and ye shall find.’ Ironically our search turned up famed bear, Doug Kass!
Back in August Doug Kass, who is president of Seabreeze Partners and a CNBC Contributor, told us that the market was way too bearish – and he’s sticking by that call.
”I still think the lows are in,” he tells us with conviction on September 22nd. And to be clear he defines the low as 110.27 in the SPY .
Kass feels strongly that investors are simply refusing to accept a key economic theme – although growth is slowing, it’s not stopping. ”All the economic releases continue to point to non-recessionary conditions in the US,” he says.
In addition, he thinks banks are on the brink of something he calls a La Dolce Vita moment, a reference to a 1960’s movie in which Marcello Mastroianni was forced to choose between the allure of high society versus domestic life. “I think domesticity wins,” he says. In other words, Kass expects banks will get it together.
And finally, he thinks lower commodity prices – especially lower oil prices – are good for the recovery. “The correlation between GDP and the inverse of oil prices is extremely tight. That might be the key to the recovery,” Kass says.
Looking at the theme broadly, Jon Najarian couldn’t agree more. He points to the latest results from Nike, Ralph Lauren , Whole Foods and Tiffany. “None of those company endorse the negative view that’s prevailing across so much of the Street.”
And when investors digest all these signals both Najarian and Kass think one catalyst will prevail above all others.
”Stocks are now more undervalued than at the generational bottom back in 2009,” Kass says. In other words, stocks are very cheap.
What do you think? We want to know!
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CNBC.com with wires.