Long-time portfolio manager Doug Kass points out that the last two times the S&P 500 touched a record intraday high and then closed down more than 1% from that high were October 11, 2007 and March 24, 2000.
I don’t think I really need to recap what happened after October 11, 2007 but, long-story-short the index fell 57%.
The March 24 high marked the top of the tech boom.
I can’t verify whether Kass’ numbers are right about these being the only two instances in the last 13 years where the index touched a record high and then closed 1% from that record (I’m skeptical) but I can tell you he has been a massive stock market bear this year.
Yesterday, he apologized for being wrong and seemingly gave up … a huge bear throwing in the towel is sometimes as good an indicator of a top as anything.
Update: I’m told that these guys pointed out the stat on stocks reversing and Kass repeated it.
