Real Story: Rest and Resilience

"Stocks in the aggregate are pretty optimistically priced [but] I think the S&P is so close to all-time high it would be surprising if it didn't follow the Dow to all-time highs," Jeffrey Saut, chief investment strategist of Raymond James tells Aaron Task on Tuesday's The Real Story podcast.

Commodity related stocks are "also a bit pricey," but Saut is sticking with the "stuff stocks theme," because of the entrance of billions of people in the emerging markets into the modern global economy. "Those new entrants will consume more stuff, and not just oil but timber and base metals, water, fertilizer and gains."

To invest in agriculture, Saut recommends the PowerShares DB Agriculture ETF (PBA Quote), although Task notes it was hit today by disappointing results from ethanol producer VeraSun Energy (VSE Quote).

For water, he likes the PowerShares Water Resources ETF (PHO Quote), although he notes it has a heavy weighting in General Electric (GE Quote).

Task's other guest Tuesday, Charles Biderman, CEO of Trim Tabs Investment Research, discussed the recent "shrinkage" in the supply of stock. Biderman explains why it's a bullish development, especially given the relative lack of interest among retail investors in U.S. equities, judging by mutual fund flow data.

Seconding the point, Task notes sell-side analysts are also skeptical and there was a spike in the put/call ratio Tuesday at the first sign of market weakness.