market folly

We're posting up Jeffrey Saut's weekly commentary again on the blog and this week's insight is entitled, "Octobered?!" Saut is the chief investment strategist at Raymond James and you can also view his commentary from last week where he compared portfolio managers to zebras just waiting to be eaten by lions. This time around, Saut highlights that while September is historically the worst month in the markets, October isn't all that great either as "more than 40% of the Dow's biggest daily declines have come in October."

Saut also highlights a prudent point that many funds were positioned with a bearish posture going into the historically weak months and essentially got killed by the continuing rally. As such, these funds scrambled to buy stocks into the end of the quarter so as to not fall behind the pack. After all, Wall Street is a performance game and underperformers die hard. Saut says that Raymond James currently has a "cautious, but not bearish" strategy.

Embedded below is Jeff Saut's latest investment strategy piece:



Alternatively, you can download the .pdf here.