Jeff Saut: A Lot of Price Risk Has Been Removed From Select Stocks

The last time we checked in with market strategist Jeff Saut in late February, he was putting money to work in stocks, but cautioned that the correction was not yet over. And he was right, as the market fell 4.77% further in the weeks after his prescient call.

This time around, his latest missive is entitled, "Be Conservative, Not Conventional." With a title like that, one can easily guess what the gist of his message is. He quotes the wise value-investing-father Benjamin Graham who wrote, "The essence of investment management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept."

Saut hints that the recent low in the market on March 16th could be "THE" low for quite some time, but if a re-test were to occur, he'd be a buyer. He also reiterated his call in buying Williams Companies (WMB) when it was trading around $28.70. This stock has been a hedge fund favorite and you can read an in-depth analysis of WMB in our current issue of Hedge Fund Wisdom.

He also cites fondness for Peoples United Financial (PBCT), LINN Energy (LINE), and EV Energy Partners (EVEP).

Overall, the market strategist concludes that, "I think a lot of the price risk has been removed from select stocks and therefore I am not afraid to gradually accumulate favored names."

Embedded below is Jeff Saut's latest market commentary:



You can download a .pdf copy here.

More insight from the strategist can be found in his thoughts on the never-ending market cycle of fear, hope and greed.

Jeff Saut Sees Tactical Bull Market, Still Cautious Near-Term

Raymond James' Chief Investment Strategist, Jeff Saut, is out with his weekly market commentary. As we pointed out last time around, he was cautious but a buyer on dips. His thoughts remain unchanged in this regard. Hedge funds also agree as they've reduced equity exposure.

However, this time around he revealed some interesting thoughts about where he thinks we are in the overall stock market cycle. He points out that according to Dow Theory, this is a bull market. But when asked if it would be tactical or secular, he replies that, "Personally I think it is tactical within the context of the broad trading range we have been experiencing since the turn of the century."

And although he makes this distinction, he can't help but pay attention to the potential warning signs flashing at him. He notices numerous similarities between the current market and the action before the April 2010 market top. As such, he is cautious in the short-term. However, he does not see another 17% decline like last year's drop in May.

Overall, Saut is still a buyer on dips (if they ever come). He is bullish on technology and specifically likes CA (CA), Hewlett-Packard (HPQ), and NII Holdings (NIHD). Additionally in the bank sector, he suggested ideas of Iberiabank (IBKC), Peoples United Financial (PBCT), and Huntington Bancshares (HBAN).

Embedded below is Jeff Saut's latest market commentary:



You can download a .pdf copy here.

For more recent research from this shop, head to the analysts' best stock picks for 2011.