Doug Kass’ top 10

Doug Kass wrote this prior to this week’s action — and it is revealing of exactly how little resonance the Bear argument had — at least prior to Tuesday. Negative sentiment was looking at as if it was about to be banished to a different part of solar system.

This shows just how rampant the bullish view was:

Top 10 Signs the Market Has Topped

10. I have gained 19 pounds since September 2006, and on Friday, I
sold my personal portfolio of Blue Chips and bought potato chips. (I was at a
Democratic fund-raiser in New York City last week, and I saw Al Gore, but I
didn’t recognize him. I asked my friend, "Who is that skinny guy?")

9. My best friend, Dean the Dream, will no longer open the emails that
contain my daily opening missives on The Edge; they get him too depressed. (The
only person that is responding to my instant messages these days is Fred Hickey,
High-Tech Strategist

8. To help with my nervous sweating during market hours, I now wrap
myself in Bounty paper towels.

7. I have been called almost daily by Bloomberg TV and CNBC
to represent the bear case. (The segment bookers have explained to me that
there are no bears left to interview.)

6. After lecturing in his graduate school business class at Yale
University in January, even permabear Dr. Robert Shiller told me I am too
bearish on housing.

5. When I request to borrow stocks (to short) from my prime broker,
Bank of America, I have begun to hope the borrow will be denied.

4. I get irate when I listen to the bullish (and seemingly glib) case
for equities made daily in the media. (Worse yet, the bulls are starting to make
sense to me.)

3. I have finally run out of cheap tequila in my bar, which I drink
most evenings on the cold linoleum floor, so in order to reduce my level of
anxiety, I have doubled my daily Zoloft intake.

2. My 14-year-old niece, Natalie, asked me at my birthday party last
Sunday: "Uncle Dougie, why don’t you ever buy stocks; it’s dumb not to,
isn’t it?"

1. Last week I ordered three "Mad Money" Jim Cramer talking bobble
heads from NBC’s Universal Store online, but they couldn’t be sent out as they
have been backordered for three months.

What a difference a week makes. Its not as if the markets can’t rebound, and the old trend won’t reassert itself. Maybe it will, maybe it won’t.  But the prior sanguine attitude is unlikely to reassert itself — at least until we see new highs on the major indices.



Top 10 Signs the Market Has Topped
Doug Kass
Street Insight, 2/20/2007 7:52 AM EST

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