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Top strategist: Brace for a bigger sell-off

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Jeffrey Saut, Chief Investment Strategist at Raymond James, says there may be a pullback coming but it could be a buying opportunity.

The S&P 500 index is having its worst day since June on higher interest rates and disappointing earnings. Jeffrey Saut, Chief Investment Strategist at Raymond James, says there may be a bigger pullback coming but believes it could be a buying opportunity.

The benchmark S&P 500 fell more than 1% while as yields on the US 10-Year Treasury bond briefly broke above 2.8%. On top of that, large companies in disparate sectors have indicated there may be tough economic times ahead.

(Read more: Stocks spiral near lows, Dow tumbles 200; all S&P sectors drop)

Tech giant Cisco said today it will be slashing 4,000 in anticipation of slower sales growth. In retail, the world’s largest retailer, Wal-Mart, surprised Wall Street when it reported a 0.3% decline in same-store sales. Higher-end Macy’s reported lower-than-expected sales and profits.

Looming over the market is the potential of the Federal Reserve Bank tapering its $85 billion per month bond-buying program which has helped keep interest rates below 3% for more than two years.

(Watch more: Wal-Mart sales slip, outlook 'cautious')

So, with a potentially rocky economic road ahead coupled with higher interest rates, is the market in trouble?

Jeffrey Saut believes that the market will try to rally out of its current position but we’re in for what he says is “the first meaningful decline of the year”.

But, to hear what Saut thinks is ahead for the markets and if there are opportunity in store, watch his interview in the video above.

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