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Jeffrey Saut continues:
“In this particular instance I think the papering over was significant in some of the measures they took. It actually looked like the first step in the right direction, ever. Every three months I think they are going to have to come back and do some more QE-whatever it is over there, and try to continue to buy more time.
As I’ve always said, the systemic problem, I’m not sure can be fixed....
Continue reading the Jeffrey Saut interview below...
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“The systemic problem being, you cannot have a unified currency without a unified fiscal policy and they never had that. So you’ve had this complete misallocation of capital that left the Greece’s of the world totally uncompetitive with the Germany’s. I don’t know if you can fix that.”
Saut had this to say about the market: “I thought the S&P would hold in the 1,335 zone and we’re testing that zone right now. You’ve got a plethora of bad news that has hit the tape both yesterday and today, and obviously Friday’s employment numbers were negative.
You actually had a chance for the sellers to really pile on here and they haven’t done that. The Dow came off the lows today, so I am hopeful this area will hold on the S&P. I still think stocks will be higher by year end.
One of the reasons for my bullish stance is I believe, at the margin, we are going to continue to see the trend of on-shoring of jobs back to the US, especially in the manufacturing space. And when you overlay that with energy self-sufficiency, our team expects crude oil production in this country to double between now and the end of 2015. The implications for that are more taxes for the federal government.
It actually means our current account deficit could actually be in balance because more than 50% of our current account deficit comes from the importation of crude oil. However, there are still some bumps and concerns between now and the election.
You could have the Straits of Hormuz shut down and oil go to $200 a barrel. I really don’t think that’s going to happen because it would give the world an excuse to go in and smash Iran. Also, the dysfunctionality inside the DC Beltway is very worrisome to me. This class warfare that the administration is hoisting onto the American public is certainly concerning to me and a great many people.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with Jean-Marie Eveillard (oversees $50 billion), Michael Pento and Gerald Celente are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include MEP Nigel Farage, Dr. Stephen Leeb, Rick Rule, Eric Sprott and Art Cashin ($612 billion UBS) by CLICKING HERE.
Eric King
Saut - The Systemic Problem, I’m Not Sure It Can Be Fixed
With continued volatility in global markets, today King World News interviewed Jeffrey Saut, Chief Investment Strategist for Raymond James, which has $360 billion assets under management. Saut spoke with KWN about Europe and warned, “As I’ve always said, the systemic problem, I’m not sure can be fixed.” He also warned about possible conflict with Iran and class warfare, but first, here is what Saut had to say about the crisis in Europe: “I think Europe took a step in the right direction a couple of weeks ago. It was consistent with what I’ve been saying year, that when push came to shove that politicians, bureaucrats and bankers are the same over there as they are over here, and when you get to the ‘nth’ hour they are going to paper over ‘Euroquake’ and try to buy more time.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
July 10, 2012
