Jeff Saut's Investment Strategy: Weekly Commentary from Raymond James ~ market folly

Tuesday, December 15, 2009

Jeff Saut's Investment Strategy: Weekly Commentary from Raymond James

Last week Raymond James' chief investment strategist Jeff Saut was out saying that there was more market upside. Two weeks ago, he was commenting on how a weak dollar trend could fuel further gains in equities. This week, his investment strategy shifts to a missive about the economy in general.

He focuses on the fact that while the economy still has work to do, it is positive that both labor and capital are moving "from dying industries like the building of McMansions, and gas guzzlers, to growth industries like biotech, infrastructure, environmental, green, clean energy, etc." This replacement sequence helps the economy to recover and start fresh. He also highlights a mutual fund out solely targeting investments in a new 'energy revolution' that will take place over the next 15-20 years. It seems that his main point is that this process will take time, but the long-term horizon looks promising as America (and the world) look to re-invent.

Turning back to stock market specifics, Saut highlights the 1085 level on the S&P 500 that has been tested (and held) four separate times. He notes that this successful technical victory combined with 'performance anxiety' by money managers heading into year-end will make the market head above the 1115 level.

Jeff Saut's weekly investment strategy 'By Popular Demand' is available in its entirety below:

You can also download the .pdf here. Make sure to also check out Saut's commentary from last week where he talked about the reasons to expect more market upside as well as his prior commentary about how a weak dollar will fuel further gains in equities. He definitely feels the market will end the year higher.

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