• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

Veteran fund manager sends urgent 9-word message on stocks todayheadline

August 5, 2025
in Business & Finance
Reading Time: 4 mins read
A A
0
Veteran fund manager who correctly forecast S&P 500's drop revamps outlook
4
SHARES
9
VIEWS
Share on FacebookShare on Twitter


The stock market has had a rally for the ages since President Donald Trump backed off some tariffs in early April, clearing the way for trade negotiations with major trading partners.

The S&P 500 marched over 25% higher since hitting a tariff-fueled low on April 8; however, cracks in the U.S. economy are forming even as President Trump’s tariff pause has expired, unleashing a new wave of inflation-unfriendly import taxes.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵

Weakening employment data and arguably sticky inflation isn’t a great recipe for stock market gains, and it doesn’t help that August is historically a tricky month for markets.

The dynamic has increased investor anxiety, causing a sharp and fast 3% dip late last week. The potential for additional losses has Doug Kass’s attention. 

Kass is a veteran hedge fund manager with 50 years of experience, including a stint as research director for Leon Cooperman’s Omega Advisors. On August 5, he sent a blunt message to investors that’s likely to turn some heads.

Hedge fund manager Doug Kass thinks the stock market could suffer a selloff.

Image source: TheStreet

Doug Kass sounds the alarm on stocks 

The stock market’s gravity-defying gains have rewarded many investors who took advantage of stocks becoming deeply oversold this spring, including Kass. A self-described contrarian with a calculator, he correctly called the selloff overdone in early April before its big move higher.

Related: Major analyst sends blunt 3-word message to investors

Nowadays, he’s less impressed, saying that the downside risk dwarfs the upside reward, particularly given what he sees as lackluster earnings outside of high-tech.

“Non tech Q2 earnings were poor — as was forward guidance,” wrote Kass on X. “The rate of growth in economy and corporate profits (ex AI) are rolling over. Market participants are worshipping at the altar of price momentum, speculating in meme stocks and riding the wave of large-cap tech equities.”

Just as Kass was bullish on stocks in April when everyone else was bearish, now he’s turned bearish when everyone is seemingly bullish. 

According to Bank of America, “all major client groups bought equities last week, led by institutions,” resulting in the first stock market inflows in six weeks. 

Fund manager buys and sells

  • Veteran fund manager who forecast Nvidia stock rally reboots outlook
  • Stocks & Markets Podcast: Small Caps & Your Portfolio With Thomas Browne
  • Legendary fund manager reveals new trades after S&P 500 rally

“Bull Markets Die Hard, so I don’t anticipate a straight-down correction,” wrote Kass in a pre-market post on TheStreet Pro on August 4. “Rather, I am expecting a jagged move lower in the weeks and months ahead. I will be reshorting strength. Friday was likely the first shot across the bow.”

Kass hits the sell button, shorts Nvidia, Palantir, Tesla

And strength is what Kass got. 

After the 3% dip in the S&P 500 and Nasdaq caused by worrisome inflation and jobs data last week, the indexes rallied on August 4, adding 1.5% and 1.9%, respectively.

Related: Fed official sends warning on ‘two-speed’ economy

The bounce gave Kass the “reshorting” opportunity he mentioned.

As a result, he delivered an urgent message, saying he is “back to my largest net short exposure since January.”

Kass is picking and choosing, and while net short, he still owns stocks, suggesting his shorting stocks is simply managing risk to control his downside if stocks do roll over.

Among the stocks he’s shorting are technology bellwethers he believes have run too fast, too far, and thus, might be due for a short-term retreat, including Nvidia, Palantir, and Tesla.

“The investing world almost universally believes it has discovered a new god in artificial intelligence and machine learning,” said Kass. “AI infrastructure CAPEX is already 20% higher as a % of GDP than what was spent on telecom and internet infrastructure at the peak of the dot com boom.”

Kass doesn’t think that’s sustainable, leading him to take “trading short rentals” on Nvidia  (NVDA)  and Palantir. 

Nvidia, the AI-chip Goliath, is up 70% in the past 12 months, including 57% in the past three months. The company’s shares have recently moved higher on optimism over rising capital expenditure budgets at major hyperscalers, including Microsoft and Meta Platforms.

Meanwhile, Palantir’s  (PLTR)  shares have skyrocketed on optimism surrounding its AI software platform, gaining 128% in the past year, and 58% in the past three months, including a sharp post-earnings rally this week.

He is also short Tesla, which has been mired in a sales slump since CEO Elon Musk supported President Trump’s reelection bid and took a role in the administration earlier this year at the newly created Department of Government Efficiency. 

Musk has since stepped down from that role, but Tesla’s sales haven’t recovered yet. In Q2, Tesla’s revenue fell 12% year over year to $22.5 billion.

“Current valuations are a poor launching pad for future investment returns,” said Kass.

Todd Campbell is long Nvidia, Palantir, and Tesla shares.

Related: Major Wall Street analyst revamps S&P 500 target amid tumble

Tags: 9wordfundmanagermessagesendsStockstodayheadlineUrgentveteran
Previous Post

New Zealand's Q2 jobless rate rises to 5.2% todayheadline

Next Post

NCAA revamps governance policy to expand influence of big conferences todayheadline

Related Posts

Beachbody (BODI) Q2 Revenue Falls 42% todayheadline

August 6, 2025
8

Beneficient faces loan defaults and investigates former CEO conduct todayheadline

August 6, 2025
9
Next Post
MLB exec Bryan Seeley to be CEO of new College Sports Commission

NCAA revamps governance policy to expand influence of big conferences todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Police ID man who died after Corso Italia fight

December 23, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0

Atlassian (TEAM) Q2 Earnings: What To Expect

August 6, 2025
Study suggests 4th-century prayer site may be one of Spain's earliest synagogues

Study suggests 4th-century prayer site may be one of Spain’s earliest synagogues

August 6, 2025

Beachbody (BODI) Q2 Revenue Falls 42% todayheadline

August 6, 2025

Beneficient faces loan defaults and investigates former CEO conduct todayheadline

August 6, 2025

Recent News

Atlassian (TEAM) Q2 Earnings: What To Expect

August 6, 2025
2
Study suggests 4th-century prayer site may be one of Spain's earliest synagogues

Study suggests 4th-century prayer site may be one of Spain’s earliest synagogues

August 6, 2025
5

Beachbody (BODI) Q2 Revenue Falls 42% todayheadline

August 6, 2025
8

Beneficient faces loan defaults and investigates former CEO conduct todayheadline

August 6, 2025
9

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Atlassian (TEAM) Q2 Earnings: What To Expect

August 6, 2025
Study suggests 4th-century prayer site may be one of Spain's earliest synagogues

Study suggests 4th-century prayer site may be one of Spain’s earliest synagogues

August 6, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co