You are being directed to ZacksTrade, a division of Zacks & Company and licensed broker-dealer. ZacksTrade and Zacks.com are separate but affiliated companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
After hitting a new high on Tuesday, stocks were having a more casual session early on Wednesday. Then at 2pm ET the Fed released minutes from their late January meetings. Next thing you know the S&P is down -1.2%.
Even though Fed officials were optimistic about accelerated economic growth from Q4 levels, the real focus was on growing concerns with the current QE program. Meaning more members are worried about the risk/reward trade off and may want to change parameters of how long they will be engaged in QE... and how much money they will spend.
Was the stock pullback warranted?
On the one hand, a world with less QE would lead to rising rates and potentially a less attractive stock market. On the other hand, the Fed will ONLY lower their QE efforts when they think the economy is ready to stand on its own two feet. When you think about it that way, then the removal of QE should be a big vote of confidence in the state of the economy... and by extension, the stock market.
Next step for investors?
Given the length and breadth of this rally, we were all due for a little wake up call. That could have come in any form. The Fed minutes were just the most readily accessible reason to test investor convictions at this time. Likely after a day or two more of volatility the market will be back to pushing the recently made highs.
Others pay thousands of dollars to see such privileged, sensitive information. Yet, we have arranged for you to receive weekly highlights with the Best of Our Best at a tiny fraction of the cost.
Steve Reitmeister, who heads up all of Zacks' portfolio recommendation services, knows which expert has the hottest hand and when a compelling trade is about to be triggered. Then he will confide to you a very tight selection of our best moves and insights.
Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including time recommendation changes, earnings announcements and, most importantly, earnings estimate revisions.
This free resource is being sent by Zacks.com
to our subscribers. We look for investment resources and inform you of
these resources, which you may choose to use in making your own
investment decisions. Zacks is providing information on this resource to
you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and
nothing herein constitutes investment, legal, accounting or tax advice,
or a recommendation to buy, sell or hold a security. No recommendation
or advice is being given as to whether any investment is suitable for a
particular investor. It should not be assumed that any investments in
securities, companies, sectors or markets identified and described were
or will be profitable.
information is current as of the date of herein and is subject to
change without notice. Any views or opinions expressed may not reflect
those of the firm as a whole. Zacks Investment Research does not engage
in investment banking, brokerage, market making or asset management
activities of any securities. Visit www.zacks.com/performance for information about the performance numbers displayed in this press release.
If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email email@example.com.