per Kass, "I think consumer behavior is going to be markedly different. You add back the fiscal drag of a rise in the payroll taxes and higher income tax rates and you start [to] manifest today in a conspicuous drop in consumer confidence," Kass said, adding "we are in the process of making the yearly high for the year."
In turn, Kass thinks the S&P 500 could soon drop by as much as 7 percent from current levels. He added it could end the year at the 1,425 level.
(Read More: Better Enjoy the Market Rally While You Can: Faber)
Kass has called a couple of bottoms in the past few years: Less than a week before the S&P 500 hit a generational low of 676 on March 9, 2009, Kass went on CNBC and predicted the bottom. On July 6, 2010, he said the market had made its lows for the year and that also proved true.
Doesn't matter what the market has done in the past when it increased over 5% in January. We are in a New Normal per Bill Gross. This time is different with japan type policies by our FED that simply don't work. Japan is the proof. UE 7.8% and 14.2% when Obama took over in 2009 and 7.9% and 14.4% now and labor force also shrunk by over $8 M folks. and how many millions now on LT Government disability? The UE (7.9%) would be north of 11.5% if the labor participation rate would not have shrunk by 4% under Obama.