Crash is coming, sell stocks
Jeff Saut, the investment strategist at Raymond James, had sent the chilling warning on 2nd October that the markets will crash.
“On Oct. 2, we had on our short-term model a sell signal and we told people if you have trading positions you should sell,” he said.
This prediction proved to be correct because stocks have crashed like a ton of bricks.
Jeff Saut has a distinguished track record of over 40 years and developed a formidable reputation for making accurate predictions about the market.
He was amongst the few who predicted in October 1987 that there would be a “waterfall decline” in the stock market.
This was followed by the great stock market crash of 1987.
“Saut’s modeling has been pretty accurate over the years,” CNBC admitted in a candid manner.
Buy stocks now, Santa Claus rally is coming
Jeff Saut has now issued the clarion call that the S&P 500 has “bottomed” and is “out of correction territory”.
“I think it’s gonna pay off as we get into 2019 because I don’t think the economy is going to slow that much, and I continue to think earnings are going to come in better than most people expect and I think people are underinvested,” he said in crystal clear terms.
Stocks have nowhere to go but up
According to Dana Lyons, a partner at J. Lyons Fund Management, Inc, the past 4 days have seen the S&P 500 drop at least 1.89% each day on an intraday basis.
He claims that this is just the 11th streak of such selling pressure in the S&P 500 going back to 1960, and the first since 2008.
He also points out that this is a rare occurrence and signals a “cyclical market bottom” of the type that happened in 1974, 1982, 1987, 2002 and 2009.
“That might give bulls some hope that perhaps things have gotten so bad, i.e., rock bottom, that there’s nowhere to go but up,” he added.
Rally of 5% to 10% coming in next 30 days
This theory of Jeff Saut and Dana Lyons is endorsed by David Bianco, the chief investment strategist at Deutsche Asset Management.
Bianco has opined that the markets are oversold.
He has predicted that a mega rally of between 5 and 10 percent is expected in the next 30 days.
“A lot can happen in a month,” he said.
Which are the best stocks to buy now?
It is obvious that we have to be ready to rake in the mega gains that will gush out of the impending Santa Claus rally.
Thankfully, leading experts have already short-listed the best stocks to buy.
Edelweiss, for instance, has cherry-picked five high quality stocks and assured that they have the potential of delivering gains of 53%.
Edelweiss’ recommendations cannot be taken lightly because their stock picks for 2017-18 delivered impressive gain of 43% despite the sorry state of the markets.
Sharekhan has recommended a portfolio of 12 quality stocks, which are a mix of high-quality large cap and midcap stocks.
Stewart & Mackertich has prepared a Model Portfolio of 11 high-quality stocks to buy for 2019. The stocks have the potential to give hefty gains of up to 54%
IIFL has also come to our rescue by homing in on eight high-quality stocks to buy now. The stocks are spread out across various sectors and have the potential to give mega gains.
It is better if we rush and tuck into these or other stocks ASAP as otherwise we will cut a sorry face later!