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Raymond James Chief Investment Strategist Jeff Saut on why he predicts a Santa Rally for the markets.
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And fiscal -- doomsday talk get me down.
Well our next guest is predicting -- Santa rally with markets in the green the last week of the year and into early January.
Jeff sought as the chief investment strategist at Raymond James.
Jeff there's actually track record on your side here right about the last week about December.
That's right he's Leo last week and the week before when the last of the retail tax on takes place -- there's tends to be upside vacuum.
Between Christmas and the first couple days of the New Year's got about a 70%.
Probability of being an up shortened week.
Yes and you don't see that percentage going down because of the cliff and all that.
I think your previous guess was right I lived inside the DC beltway after I think they will come together they won't get a grand solution.
But I think they could get the first step.
Maybe 500000.
That your other guest suggested in terms of the did definition of what wealthiest I think he's also right on -- -- -- been under tremendous personal pressure to cut a deal.
And when the new congress sits -- January 4.
I'm I'm coming to you from Virginia right now and in cantor is indeed the next stop and he has a lean and hungry look to lean and hungry look.
Now if markets don't rally against expectations for the last week of December and into early January.
Does that mean that the markets are gonna be in trouble or would you basically say well then by -- because eventually it is going to rally the -- usually does in the last week of December.
Well the old stock market saw is that they've -- fails to call the bears will roam on broad and wall.
That also has a pretty high statistical probability.
I'm not so sure it plays that way this time because of all the cross currents because of the fiscal cliff.
And I do think that the legislators will get together in the empower all or the first part of February -- -- first part of January.
And try and -- -- to some kind of agreement that's the way Washington works all right thanks for being with us today we appreciate -- -- -- You bet.
