Doug Kass: If There Is A Surprise In The Market It Will Be On The Upside

Doug Kass expects a trading range on the S&P 500 both on price and on valuations:

“Between 1025 and 1150 on the S&P, between 11 times and 13 times forward earnings. I’d sell straddles and strangles. We’re not going to have fast money we’re going to have boring money.” (Doug Kass, CNBC)

But even more interesting is his view on a possible surprise move:

"It’s interesting to note that Kass says if he's wrong, he believes the bias in the market is higher largely due to pension funds that could skew into the stock market on a hint the bond market is entering a correction.” (in CNBC.com)

Related ETFs: SPDR S&P 500 ETF (Public, NYSE:SPY) , SPDR Dow Jones Industrial Average ETF (Public, NYSE:DIA), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iShares Russell 2000 Index (ETF) (Public, NYSE:IWM)