Wall Street bull Jeffrey Saut predicts the market will stabilize by mid-June despite growing trade tensions with China and Mexico.
But first, he expects investors will have to get through a cruel couple of weeks.
“Our models… are saying we ought to be chop around and flop around until mid-June,” the Capital Wealth Planning chief investment strategist and portfolio manager said Friday on CNBC’s “Trading Nation. “
Saut, known for his basket of proprietary indicators, has been on Wall Street for almost a half century. He acknowledges it has been a particularly challenging market to navigate, quipping in his Friday note “Emotionally, I may have to throw in the towel and capitulate.”
The major indexes are coming off their worst month of the year. Plus, the Dow just logged its first six week losing streak since 2011.
However, Saut contends the discouraging statistics don’t suggest gains are doomed for the rest of the year.
“The market ought to have enough internal energy to gather itself back up and go to new all-time highs,” he said.
Saut is convinced market and economic fundamentals are solid, and they should drive the S&P 500 to 3,000 by year-end, a 9% gain from Friday’s close.
According to Saut, selling stocks now would be a mistake. Instead, he’d be looking for bargains and putting cash back to work.
“The economy is actually much better than people think,” Saut said.