According to Doug Kass, there’s a nasty catalyst barreling toward the market and when it hits, the bulls are going down.
And that catalyst will come in the form of a sharp decline in housing.
We recognize that Kass’ thesis may be met with skepticism. Some would argue that the market has rallied just fine without housing doing anything.
But Kass thinks that’s about to change.
”My father was a dentist and he always used to tell me your mouth is central to the health of your body. It’s the same thing with housing. Housing is central to the health of our domestic economy,” says the president of Seabreeze Partners and CNBC Contributor.
Kass often comments on CNBC’s Fast Money about a string of looming catalysts that threaten to knock down stocks. But he thinks none of those catalysts are more problematic than housing.
“We’re going to see a weakened residential real estate market. And that’s very important headwind to domestic growth,” he says.