What he doesn’t like are consumer staples and utilities. Both look quite expensive, perhaps reflecting investors’ current preference for the purportedly safest stocks.
After nearly two decades as chief market strategist at Raymond James, Saut announced his “retirement” in May. That retirement didn’t last long. Saut and his colleague Andrew Adams are now each authoring their own weekly strategy pieces and helping to manage about $2 billion in assets at Capital Wealth Planning, a Naples, Fla.-based RIA. They are continuing to produce perceptive market research, though at a slightly less frenetic pace than they did at Raymond James.
In this income-starved world, Capital Wealth deploys a strategy of selling call options on individual securities within large-cap, blue-chip equity portfolios. The firm seeks to generate an additional 5 percent to 7 percent in income for clients. Saut said the strategy works best for portfolios with at least $1.3 million in assets.