Tags: Raymond James | strategist | Jeffrey Saut | interest rate hikes | ECB | Bank of Japan | 2010

Strategist: Beware of Rate Hikes, Sovereign Defaults

Wednesday, 30 Dec 2009 02:30 PM

Usually bullish Raymond James strategist Jeffrey Saut sees land mines ahead in 2010.

Saut says he expects interest rate hikes from the ECB and the Bank of Japan in 2010 and potential sovereign wealth fund defaults in Venezuela, Ukraine, Argentina, Pakistan, and Latvia.

Saut also sees more U.S. exports and business spending and a return to active portfolio management in the New Year.

“Indeed, stock selection, and active portfolio ‚Ä®management, are likely to be the key drivers of portfolio returns in the year ahead,” he writes in a note to investors.

“We think investors should be positioned for … increased geopolitical threats; Asian urbanization; a potential commercial real estate crisis; rising taxation/inflation/regulation; the emerging and frontier market consumer; rising global growth, free cash flow beneficiaries; energy and alternative energy; infrastructure plays … (and) technology.”

From a macro investing perspective, Saut favors quality growth, dividend yield, positive earnings revisions, and large capitalization stocks.

"With market valuations below their 20-year mean valuation, surging earnings and low interest rates, we remain constructive.”

The U.S. economy is predicted to grow around 2.5 percent in 2010, reversing a decline in real gross domestic product of a similar magnitude in 2009, the Market Oracle reports.

The pace of economic expansion envisioned for 2010 is roughly one-third of the historical average of economic growth that has occurred in the first year following recessions in the post-war period, excluding the 1990-91 and 2001 downturns.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
StreetTalk
Usually bullish Raymond James strategist Jeffrey Saut sees land mines ahead in 2010. Saut says he expects interest rate hikes from the ECB and the Bank of Japan in 2010 and potential sovereign wealth fund defaults in Venezuela, Ukraine, Argentina, Pakistan, and...
Raymond James,strategist,Jeffrey Saut,interest rate hikes,ECB,Bank of Japan,2010,potential sovereign wealth fund defaults
236
2009-30-30
Wednesday, 30 Dec 2009 02:30 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved