@realmoney
Dec 01, 2020 | 09:20 AM EST DOUG KASS
Risk Now Dwarfs Reward
* The S&P is about 20% overvalued
* I am medium-sized (about -25%) net short
* And I have a lot of room to get shorter on further strength
I have been net long for the majority of 2020.
No longer.
Dec 01, 2020 | 09:20 AM EST DOUG KASS
Risk Now Dwarfs Reward
* The S&P is about 20% overvalued
* I am medium-sized (about -25%) net short
* And I have a lot of room to get shorter on further strength
I have been net long for the majority of 2020.
No longer.
I have steadily reduced large holdings in a number of equities to small-sized after the stocks experienced large price share gains and have unattractive upside/downside ratios (e.g., ($DIS) , ($GM) , ($WMT) , ($MS) , ($GS) , ($PZZA) , ($VTV) , ($VBR) , etc.).
And I have totally eliminated some others (e.g., ($TWTR) , ($PNC) ).
The notion of "margin of safety" and reward vs. risk is, too often, missed by the investment community that is now, more than ever, inhabited by those individuals, products and strategies that worship at
The notion of "margin of safety" and reward vs. risk is, too often, missed by the investment community that is now, more than ever, inhabited by those individuals, products and strategies that worship at
the altar of price and momentum - and who seem to know everything about price and nothing about value.
Buying equities at the inflated relationships described in the chart in today's opening missive (see below) has historically yielded sub par or negative returns.
Buying equities at the inflated relationships described in the chart in today's opening missive (see below) has historically yielded sub par or negative returns.
I expect this time to be no different! @jimcramer @tomkeene @business @davidfaber @carlquintanilla @Riskreversal @terranovajoe @guyadami @lizclaman @SquawkCNBC @cnbcfastmoney @threadreaderapp unroll
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