Excerpt from Raymond James strategist Jeffrey Saut's latest essay (published Monday, January 10th):
...For months I have commented about the burgeoning La Niña weather pattern combined with more volcanic ash in the atmosphere than anyone can remember. That duo has caused the Hadley Cell Winds to expand toward the “poles,” fostering droughts in Russia and the Amazon. Meanwhile, Australia is flooding, shuttering most of its coal mines, which is obviously good for our investment positions in coal stocks. More specific to this country, I have opined that because of the shift in the “cell winds” the U.S. would experience a cold, wet, winter and consequently have been recommending an overweighting of energy stocks. I think the aforementioned weather trend will continue for the balance of the year with an attendant “hop” for the energy complex. That said, I can’t shake the feeling that in the very short-term stocks are making a trading top.