Doug Kass: Waiting For A Correction

Doug Kass expressed his markets views today and he is mostly bearish. He sees several market threats to the markets including,

"I remain fearful of the ramifications of populism in 2010-2011 on economic growth and on the market's prospects."

This China will tighten monetary policy thus tightning global liquidity,

"China is setting the stage for a rise in benchmark interest rates in the first half of 2010 (something included in my surprises for 2010 list)."

And thinks that when the the stock market looks to good to be true, you should be fearful,

"And I know that when things look too good to be true (read: the markets persistently rise), they usually are! I am not a Cassandra, and I have suggested on RealMoney Silver that, while there are numerous market positives in place as we enter 2010 that could produce favorable economic and corporate profit growth outcomes, there are also many probable outcomes that are less benign. Often, the irrational is rationalized in such strong market settings, and arguably, this has been the case over the past six months, as headwinds (e.g., still sluggish labor markets, rising populism and marginal tax rates, commodities pressure, higher interest rates, etc.) are too easily ignored and perception becomes readily detached from reality."

Doug Kass is the general partner Seabreeze Partners Long/Short LP and Seabreeze Partners Long/Short Offshore LP. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box."