Thread by @DougKass

@realmoney

Jan 06, 2021 | 08:00 AM EST DOUG KASS
The Election Bottom Line: Active Stock Picking Will Now Likely (and Perhaps, Materially), Outperform Passive Investing
* I now expect an acceleration in the pivot from growth to value

* As reflected by recent voting results, Americans are more in the middle of the road than at the extremes

In a market warning in Monday's opening missive I wrote:

"The Georgia Senatorial contests are tightening up as measured by the polls and betting parlors."

-

Kass Diary, The New Year Begins Where the Old Year Ended

What is clear to me from November's and last night's voting results is that our country's voters have repudiated the extremes of both the Democratic far left and Republican far right.

Should the Democrats win both

Senate seats in Georgia, which now seems probable -- I would expect a continuation and an acceleration into a new leg higher in the pivot from growth to value.

Here is the outcome I have expected for 2021 and how I am playing it. Last night's elections provide an exclamation

point to my strategy:

* Reduce/short equity holdings

* Sell/short growth ( ($PTON) , etc.), homebuilders

* Buy value (banks, autos, telecomm (e.g., ($VZ) , etc.)

* Buy precious metals ($SLV) , ($GLD)

* Short bonds ($TLT)

I remain large short in net exposure, see here - an

outside of consensus view. Indeed I was adding to my Index shorts yesterday, and moved back to very large-sized. The growthy Nasdaq ($QQQ) seems very vulnerable.

As you are all aware, I have sold out the entirety of my growthy names (e.g., Amazon ($AMZN) and Alphabet ($GOOGL) )

in recent weeks.

Some of my recent new shorts and add ons include: $PTON, ($TWTR) see here, ($AAPL) , ($DIS) , ($HLT) , ($H) . @jimcramer @tomkeene @SquawkCNBC @cnbcfastmoney @andrewrosrkin @ScottWapnerCNBC @riskreversal @carlquintanilla @threadreaderapp unroll