Latest news with #Kass
Fox News
a day ago
- Business
- Fox News
Boulder, CO To California: How Radical Policies Are Undermining Our Nation (ft. Kass & Mike Lazerow)
Story #1: Following the terrorist attack in Boulder, CO as an illegal immigrant attacks a peaceful march in support of Israeli hostages with Molotov cocktails, what does that say about the impact of illegal immigration and radical ideology in America? Story #2: Will is joined by Kass and Mike Lazerow, serial entrepreneurs, investors, and authors of 'Shoveling $h!t: A Love Story,' about the brutal realities of building businesses, maintaining marriages through it, and raising families in the chaos. The three share the lessons they've learned from their entrepreneurial successes and failures. Story #3: A CNN anchor loses a debate after a trans runner wins a track meet against girls in California. Plus, Will and the Crew ask the question: What would it take for the Dallas Mavericks to give up likely number one pick Cooper Flagg? Tell Will what you thought about this podcast by emailing WillCainShow@ Subscribe to The Will Cain Show on YouTube here: Watch The Will Cain Show! Follow Will on X: @WillCain Learn more about your ad choices. Visit
Fox News
2 days ago
- General
- Fox News
Bipartisan senators blast 'rampant' antisemitism
All times eastern Making Money with Charles Payne FOX News Radio Live Channel Coverage WATCH LIVE: Will Cain interviews entrepreneurs Kass and Mike Lazerow
Yahoo
3 days ago
- Business
- Yahoo
Veteran fund manager who predicted April rally updates S&P 500 forecast
Veteran fund manager who predicted April rally updates S&P 500 forecast originally appeared on TheStreet. It's been quite a rally. After stocks were deeply oversold in early April following what President Donald Trump called his Liberation Day tariff reveal, the S&P 500 has posted rip-roaring returns, gaining 20% in about six weeks. The rally caught many investors off guard. The potential for tariffs to increase inflation, zapping economic activity and corporate profitability, had sent stocks down 19%, just shy of bear-market territory. One investor who wasn't surprised was the Wall Street veteran hedge fund manager Doug Kass. 🔥 💰 Kass has been investing professionally since the early 1970s. His career, which includes a stint as research director for billionaire Leon Cooperman's Omega Advisors, has enabled him to make several savvy calls, including forecasting the bull market top in 2021 and bear market low in 2022. More recently, Kass correctly predicted a stock market reckoning this year in December and accurately called for the S&P 500 to bottom after its tariff-driven selloff in April. Kass updated his view on stocks this week, and his latest thoughts may frustrate some investors. The US economy has slowed markedly from its pace last summer, and that should be bad news for the S&P 500, given corporate revenue and profit growth are cornerstones of stock market valuation. The economy's headwinds include shifts in consumer spending toward essentials from discretionary buys amid sticky inflation; a weak jobs market, and eroded consumer and business uncertainty associated with stiff tariffs and mounting US debt adds to the pressures. In short, the backdrop isn't nearly as favorable as it was for stocks in 2023 and 2024, when optimism that the Federal Reserve would shift from hawkish to dovish monetary policy and growth in spending on artificial intelligence fueled back-to-back 20%-plus returns for the S&P 500. Inflation has retreated since it peaked above 8% in 2022. However, core inflation remains above the Fed's 2% target. The latest core Consumer Price Index and Personal Consumption Expenditures data show inflation at 2.8% and 2.5% in April, respectively. Meanwhile, the Fed's rate cuts last September, November and December have yet to reverse recent job losses. The unemployment rate has increased to 4.2% from 3.4% in 2023. According to Challenger, Gray & Christmas, companies have announced over 602,000 layoffs this year, up 87% from last year. Given inflation and jobs data, it's little wonder consumers feel uneasy, especially amid a turbulent sea of trade war news. The Conference Board's Expectations Index improved last month on hopes of China trade negotiations, but at 72.8 it remains below the 80 threshold commonly found ahead of a recession. Despite all the challenges, the stock market has marched higher since April 9, when President Trump reversed course and paused many of the reciprocal tariffs announced on April 2. However, 25% tariffs remain on Canada, Mexico and autos, and a 30% tariff on China (down from 145% previously). The recent decision by the Court of International Trade blocking most of Trump's tariffs is primarily seen as temporary, with plenty of levers available to the White House to continue its trade war. (In fact, a federal appeals court has delayed the trade court's block on the tariffs as it considers the case.) Yet the stock market has largely shrugged, with the S&P 500 returning 20% from its April 8 low, including a month-to-date 6% return in May. In December, Kass correctly forecast that stocks had run too fast and that the S&P 500 was due for a pullback of 15%. Initially, Kass was wrong, as the S&P 500 rallied into mid-February. But he continued to beat the bearish drum, a savvy move given the S&P 500's 19% slide through early April. More Economic Analysis: Hedge-fund manager sees U.S. becoming Greece A critical industry is slamming the economy Reports may show whether the economy is toughing out the tariffs The stock market's drop was rapid and steep, prompting Kass to correctly pivot to bullish in April, citing the likelihood of an oversold rally. Now that we've received those expected gains, Kass has shifted again, taking a decidedly bearish tone. "I am respectful of the market's extraordinary price momentum over such a short-term time frame; however, I plan to put a larger short stake in the ground," wrote Kass in a post on TheStreet Pro. "Going against the consensus grain and the herd is nothing new to me." Kass's bearishness is rooted in the rise of global economic uncertainty and the potential threat to the concept of American exceptionalism. "Political and geopolitical polarization and competition will probably translate into less centrism and, in turn, a reduced concern for deficits," wrote Kass. "This will create structural uncertainties, fiscal sloppiness, and worldwide imprudence. It will also create the possibility that bond markets 'disanchor.'" Kass says valuation has once again become frothy, given that the forward price-to-earnings multiple is back above 21, according to FactSet. That elevated p/e multiple is problematic if the economy suffers stubborn inflation and slow growth. "I, however, still see valuations and consensus expectations for economic and corporate profit growth inflated," wrote Kass. "So, look for the soft data to weaken into the hard data as the housing market slows and the vulnerability of the middle class is revealed. Expect below trend-line economic growth with sticky inflation lie ahead ("slugflation")." How far could the S&P 500 drop if things worsen? "I view less than 5% upside compared to 10%-15% downside. This is an increasingly unattractive ratio of nearly three to one," said fund manager who predicted April rally updates S&P 500 forecast first appeared on TheStreet on May 31, 2025 This story was originally reported by TheStreet on May 31, 2025, where it first appeared.
Miami Herald
3 days ago
- Business
- Miami Herald
Veteran fund manager who predicted April rally updates S&P 500 forecast
It's been quite a rally. After stocks were deeply oversold in early April following what President Donald Trump called his Liberation Day tariff reveal, the S&P 500 has posted rip-roaring returns, gaining 20% in about six weeks. The rally caught many investors off guard. The potential for tariffs to increase inflation, zapping economic activity and corporate profitability, had sent stocks down 19%, just shy of bear-market territory. One investor who wasn't surprised was the Wall Street veteran hedge fund manager Doug Kass. This Memorial Day, get $100 off TheStreet Pro - our best deal of the summer won't last long! Your portfolio will thank you Kass has been investing professionally since the early 1970s. His career, which includes a stint as research director for billionaire Leon Cooperman's Omega Advisors, has enabled him to make several savvy calls, including forecasting the bull market top in 2021 and bear market low in 2022. More recently, Kass correctly predicted a stock market reckoning this year in December and accurately called for the S&P 500 to bottom after its tariff-driven selloff in April. Kass updated his view on stocks this week, and his latest thoughts may frustrate some investors. The US economy has slowed markedly from its pace last summer, and that should be bad news for the S&P 500, given corporate revenue and profit growth are cornerstones of stock market valuation. The economy's headwinds include shifts in consumer spending toward essentials from discretionary buys amid sticky inflation; a weak jobs market, and eroded consumer and business confidence. Related: Stock market tumbles after uncommon event The uncertainty associated with stiff tariffs and mounting US debt adds to the pressures. In short, the backdrop isn't nearly as favorable as it was for stocks in 2023 and 2024, when optimism that the Federal Reserve would shift from hawkish to dovish monetary policy and growth in spending on artificial intelligence fueled back-to-back 20%-plus returns for the S&P 500. Inflation has retreated since it peaked above 8% in 2022. However, core inflation remains above the Fed's 2% target. The latest core Consumer Price Index and Personal Consumption Expenditures data show inflation at 2.8% and 2.5% in April, respectively. Meanwhile, the Fed's rate cuts last September, November and December have yet to reverse recent job losses. The unemployment rate has increased to 4.2% from 3.4% in 2023. According to Challenger, Gray & Christmas, companies have announced over 602,000 layoffs this year, up 87% from last year. Given inflation and jobs data, it's little wonder consumers feel uneasy, especially amid a turbulent sea of trade war news. The Conference Board's Expectations Index improved last month on hopes of China trade negotiations, but at 72.8 it remains below the 80 threshold commonly found ahead of a recession. Despite all the challenges, the stock market has marched higher since April 9, when President Trump reversed course and paused many of the reciprocal tariffs announced on April 2. However, 25% tariffs remain on Canada, Mexico and autos, and a 30% tariff on China (down from 145% previously). The recent decision by the Court of International Trade blocking most of Trump's tariffs is primarily seen as temporary, with plenty of levers available to the White House to continue its trade war. (In fact, a federal appeals court has delayed the trade court's block on the tariffs as it considers the case.) Yet the stock market has largely shrugged, with the S&P 500 returning 20% from its April 8 low, including a month-to-date 6% return in May. In December, Kass correctly forecast that stocks had run too fast and that the S&P 500 was due for a pullback of 15%. Initially, Kass was wrong, as the S&P 500 rallied into mid-February. But he continued to beat the bearish drum, a savvy move given the S&P 500's 19% slide through early April. More Economic Analysis: Hedge-fund manager sees U.S. becoming GreeceA critical industry is slamming the economyReports may show whether the economy is toughing out the tariffs The stock market's drop was rapid and steep, prompting Kass to correctly pivot to bullish in April, citing the likelihood of an oversold rally. Now that we've received those expected gains, Kass has shifted again, taking a decidedly bearish tone. "I am respectful of the market's extraordinary price momentum over such a short-term time frame; however, I plan to put a larger short stake in the ground," wrote Kass in a post on TheStreet Pro. "Going against the consensus grain and the herd is nothing new to me." Kass's bearishness is rooted in the rise of global economic uncertainty and the potential threat to the concept of American exceptionalism. "Political and geopolitical polarization and competition will probably translate into less centrism and, in turn, a reduced concern for deficits," wrote Kass. "This will create structural uncertainties, fiscal sloppiness, and worldwide imprudence. It will also create the possibility that bond markets 'disanchor.'" Kass says valuation has once again become frothy, given that the forward price-to-earnings multiple is back above 21, according to FactSet. That elevated p/e multiple is problematic if the economy suffers stubborn inflation and slow growth. "I, however, still see valuations and consensus expectations for economic and corporate profit growth inflated," wrote Kass. "So, look for the soft data to weaken into the hard data as the housing market slows and the vulnerability of the middle class is revealed. Expect below trend-line economic growth with sticky inflation lie ahead ("slugflation")." How far could the S&P 500 drop if things worsen? "I view less than 5% upside compared to 10%-15% downside. This is an increasingly unattractive ratio of nearly three to one," said Kass. Related: Fed official sends strong message about interest-rate cuts The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
25-05-2025
- Business
- Miami Herald
Hedge-fund manager sees U.S. becoming Greece
Maybe you forget Grexit, the nickname given to Greece's multi-year financial crisis in the mid-2010s. It had many people, investors and governments worried the small nation would be forced to withdraw from the European Union. It was a big deal at the time. Greece was a financial and economic mess because government spending was far greater tax revenue. It caused financial outlets to devote many, many column inches or many, many broadcast minutes debating what might happen if Greece was tossed from the European Union. This Memorial Day, get $100 off TheStreet Pro - our best deal of the summer won't last long! Your portfolio will thank you! Solutions were found Greece afloat, and the country so far hasn't tossed from the EU, but its finances remain shaky. The StreetPro columnist Doug Kass hasn't forgotten Grexit. And he's worried the financial condition of the United States is deteriorating into something resembling Greece. Related: Billionaire fund manager, skeptical of AI, backs shocking stock What prompted Kass' thinking came a day after Congress passed President Trump's "beautiful tax bill." The bill would extend Trump's 2017 tax cuts and add tax cuts but doing little to replace lost tax revenue. The event that Kass saw was that the prices of credit default swaps on U.S. government debt (which pay off in event of a default) were nearing the prices now being charged on credit default swaps on Greece's debt. Credit default swaps are basically insurance, and you pay what is basically a premium for the protection. If the debtor defaults on the debt, he pays off the investor. Kass, president of Seabreeze Partners Management, thinks investors appear blissfully unconcerned with implications of the tax bill. "It appears investors are dancing like 'Zorba the Greek,' while the U.S. spends gluttonously," he wrote. "Zorba the Greek" was Nikos Kazantzakis' 1940s novel and, later, a 1964 film about a Greek working man whose zest for life overshadows all else, often with tragic implications. What shocks Kass: "The bill's debt impact - with a 220% debt-to-GDP ratio by 2055 - reflects the Republican party's ideological shift to the Democratic party's liberal big spending of the past." Keystone-France/Getty Images The underlying assumption being that tax cuts will fuel economic growth and take care of the deficits. Maybe not. The major bond-rating agencies no longer see U.S. debt as AAA rated. Moody's Investors Service downgraded U.S. debt on May 16 to Aaa to Aa1. Related: Stock Market Today: Tariffs are back! Stocks (surprise!) are lower. Investors did pay attention to the downgrade. It was part of the reason the S&P 500 fell 2.6% this past week. (President Trump also contributed to the decline with new tariff threats and criticism of Apple's (AAPL) reluctance to move production of iPhones back to the United States. Apple fell 7.6% on the week.) More Economic Analysis: Fed inflation gauge sets up stagflation risks as tariff policies biteU.S. recession risk leaps as GDP shrinksLike it or not, the bond market rules all And the credit default swaps market sees U.S. debt facing more downgrades, maybe down to BBB+, not much above BB-. That's Standard & Poors' minimum rating for an investment-grade bond. To real solution to fixing the problem, Kass thinks, "is cutting expenses, and biting the bullet that way, but neither party seems willing to do that." Related: Car dealers have a bigger problem than tariffs Today's expanding debt crisis may be similar to 2007, Kass says, when the subprime mortgage crisis was starting to emerge. At the time, Chuck Prince, then CEO of banking giant Citigroup (C) , famously said. "As long as the music is playing, you've got to get up and dance." To Doug Kass, it sounds like Zorba the Greek. Related: Veteran fund manager who forecast S&P 500 crash unveils surprising update The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
