When it comes to making money in the stock market right now, Wall Street veteran Jeffrey Saut is encouraging investors to keep it simple and stop overthinking.
He wants them to take advice from the 1923 Edwin Lefèvre book "Reminiscences of a Stock Operator," which is considered a very loosely based account of securities trader Jesse Livermore's life.
"They [the book] refer to a guy named 'Old Turkey' who's a very good operator on the floor of the New York Stock Exchange. So everybody would come up to him and ask him what they should do," said Raymond James' Saut on "Trading Nation."
"He would cock his head to one side, and with a smile he would say, 'You know, it's a bull market.' He was giving them pearls of wisdom, and that's really all you need to know, that we are in a secular bull market that has years left to run," the firm's chief investment strategist said.
Saut's latest thoughts came as stocks ripped higher on Wednesday, with the seeing its biggest one-day gain in two months.
He's also taking a Freudian approach to investing right now, diagnosing Wall Street with a case of anxiety.
"A lot of people are trying to over-analyze this and over-trade it. In reality, it's a secular bull market," said Saut. "I think things are going very well here and I don't see what's going to derail it."
He temporarily scaled back his near-term forecast earlier this year and went to cash. By last April, Saut says, his models ticked positive again and he put money back into the market, citing few risks.
As for the best ways to capitalize on a next leg higher, he recommends looking at the banks.
"I like the financials. I think they're trading at a substantial discount to the market multiple. I still think the market will pay up for true growth," Saut said.
