Jeff Saut, the veteran investment strategist at Raymond James, caught everyone’s attention when he said that his models told him that the stock market would see its top on July 19 and then plunge by 10% to 12%.
The S&P 500 closed at a then all-time closing high of 1,692 that day. After closing at 1,695 on July 22, the S&P has been trending lower.
And today, it’s down to 1,675.
So, if Saut is right (plus or minus a day), would it be his best call ever?
Saut told Eric King of King World News that it might be one of his three best. Here’s Saut:
“I think two of the best calls I’ve made in my career, one is credited to Dow Theory which had a sell signal in September of 1999. Raymond James is the only investment bank or brokerage firm that wrote about that sell signal, and if you listened to that it saved you a lot of money….
“I was then on TV on March 2nd, 2009 saying, “The market bottoms this week.” I think those are two of the best calls I’ve ever made. I would just add by the way that I’ve made some bad calls (laughter ensues). But I am focused on the overall markets because if you do get this 10% or 12% hit, I think it’s going to be across the board, and I also think there are going to be select stocks that are going to go down a lot more than 10% or 12%.
I would add that if we do get this hit I think it will be for buying. Right now I think this earnings season is going to disappoint and this is one of the main reasons I believe the market is susceptible to a significant downturn here.”
Read more of King’s interview with Saut at KingWorldNews.com.
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