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S&P 500 Still Has “an Appointment Below 1,600,” Says Jeff Saut

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The so-called worst month of the year for stocks has, so far, been a pleasant surprise, with the S&P 500 (^GSPC) getting back within 1.5% of its record high set six weeks ago. But at least one Wall Street veteran is advising investors to wait a bit, suggesting a better buying opportunity will be here soon.

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"I still think we're about halfway through the correction," says Jeff Saut, chief investment strategist at Raymond James Financial in the attached video. "And I still think we have an appointment below 1,600 on the S&P but above 1,500 before the correction is over."

That said, Saut is not trying to get too cute with a market he thinks is ultimately headed to unforeseen levels. "We're only talking about another four or five percent (downside)," he says. "That's not a whole lot to finesse with."

Related: Market Top Is in, Brace for Correction: Jeff Saut

This from the man who called the summer sell-off, almost to the day, when he pegged July 19th as the D-Day equivalent for stocks. In fact, Saut says he has told people for the past three years to "raise cash in the spring and put it back to work in the summer."

But now, as much as he targeting a run-up to 1,850 for the S&P next year, he plans to get invested for that event after we've had our first meaningful decline of the year.

"If we continue to trade at 15.2 times next year's estimate, with no earnings multiple expansion, you're looking at 1,850 on the S&P 500" he says, adding "it's a mistake to get bearish here."

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