Jeffrey Saut, Chief Investment Strategist at Raymond James, joins the Financial Sense Newshour to address his short-term outlook for the market along with a number of big picture items he sees playing out.
Back in May, Jeff said that the market would be vulnerable to its first meaningful decline between mid-July and mid-August, with his timing models targeting July 19th for when the market’s “entire internal energy would be used up.”
Since that date, the market has done very little, losing most of its momentum and only getting slightly higher before correcting to where it is today. Today, Jeff says he’s holding 40% cash and believes the correction is only halfway through, with another 5-7% downside left, targeting somewhere between 1530 and 1560 on the S&P.
With that said, Jeff does believe the market will be higher by yearend and that investors should reinvest as we get closer to previous support levels. Also, citing historical precedents, Jeff explains a number of reasons why he thinks "there's a decent probability that we are in a new secular bull market like the one we were in from 1982 to 2000."
Lastly, with respect to a topic discussed on the Financial Sense Newshour many times in the past, Jeff explains how the "Great Rotation" from bonds and bond funds into stocks has just started to begin and will continue, he believes, over the next 7 to 10 years as interest rates rise.
If you'd like to hear this full interview with Chief Investment Strategist Jeffrey Saut airing Friday for subscribers where he also explains which sectors he favors, whether dividend-paying stocks are still a good place to invest, and a range of other topics, you may do so by CLICKING HERE to gain access and become a premium subscriber. In addition to hearing from other money managers, institutional investors, and analysts regularly interviewed for FS Insiders, you’ll also gain access to our entire archive of prior interviews.
