Excerpt from Raymond James strategist Jeffrey Saut's latest essay, published Monday (October 13th):
...[F]or over the past year our main theme has been clean balance sheets, decent fundamentals, and a dividend yield. Speaking to these points, Raymond James’ research department is publishing a report that highlights some of the best yield ideas compiled from our analysts. These ideas range from Master Limited Partnerships [MLPs], Real Estate Investment Trust [REITs], and convertible preferreds/bonds; to fixed income, closed-end funds and Exchange Traded Funds [ETFs]. In addition to these ideas, we have our own “shopping list” using names like Eli Lilly (NYSE:LLY), and DuPont (NYSE:DD), which are positively rated by fundamental analysts at our correspondent research firm.
...[W]e think the equity markets have a high probability of bottoming this week. That sense is also reinforced by the MACD Indicator, which is at levels not seen since the November 2002 markets lows, as can be seen in the nearby chart. The only question in our mind is how that bottom is formed. Does it come in the form of a “selling dry up,” or does it come in the shape of a “crash?”
However it occurs, chance favors the prepared mind and participants should ready their “shopping lists” and map out their strategy, for as Sun Tzu wrote 26 centuries ago, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”