Excerpt from Raymond James strategist Jeffrey Saut's latest essay:
In this whipsaw environment, trading has been difficult. However, our yield theme recommendations (read: dividends) are holding up pretty well. Some of the names that play to this theme and are favorably rated by our fundamental analysts remain Linn Energy (LINE), Alaska Communication (ALSK), Embarq (EQ), Inergy (NRGY), Legacy Reserves (LGCY), Magellan (MGG), and Teekay (TOO), to name but a few.
The call for this week: Friday felt like Bear Stearns II (BSC), since the news about the GSEs broke on Friday just like with Bear Stearns. Hopefully, this week will be a déjà vu dance of the week following the Bear Stearns’ news with the financials leading the way to the upside. Yet as Michael Steinhardt recently said, “There is rarely a moment such as this where as a contrarian, one sees so many reasons technically, [and] stock market-wise, to be bullish. I can’t imagine a circumstance where a market is more available, more ripe, for a rally than this one. Still, this time it’s different.”