Despite being on the wrong side of the recent stock market rally, Doug Kass maintained his bearish outlook, he said Thursday on CNBC.
"We're moving toward an ah-ha moment in the market where people begin to realize that these bouts of QE over four years have not produced escape velocity in the domestic economy," he said. "The domestic economy is not self-sustaining. Wealth in the stock market is not trickling down. And we saw flat revenues in the first quarter. Yes, earnings were up 3½ percent, but half of that was from buybacks. There's an artificiality in both bond prices and stock prices."
Kass said that he had misjudged the effect of quantitative easing by the world's central banks.
"I underestimated the impact that global monetary easing would have and that there were few alternatives to equities," he said.
