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.
It certainly was a couple wild days for the market while I was fishing Lake Okeechobee down in Florida. Gladly I was able to stay abreast of these important matters while also bagging a boatful of big bass.
The main culprit for the drop on Monday was a Goldman Sachs report outlining how they believe the market is overvalued by most measures. There is some merit to their points EXCEPT for the most important element. That being the value of stocks versus other investment alternatives... in particular bonds.
Their study went back 35 years. Meaning they started when the 10 year bond rate was at 9.1%. From there it went up to a peak in 1981 and has been on a downward course ever since. Meaning that in modern times, bond rates have never been this low and unattractive. Or real estate so lackluster. Or precious metals a non-factor.
I am NOT saying that stocks are cheap. I would say they are fairly valued pushing towards fully valued given the current environment. And yes, if that environment changes, then so too does my stock market outlook. Namely if 10 year Treasury bond rates climb to around 3.5% or higher, then the price of stocks will come under pressure.
For now the bull market is in place and the rise back towards the highs the last two days tells you that most investors are in agreement with that notion. However, it will be tougher sledding this year.
Gladly we know how to make money in these times by keeping a firm focus on earnings estimate revisions. That is especially true during earnings season as our earnings whisper system coupled with the Zacks Rank gives us a big edge over the average investor. Jared Levy covers this timely strategy in his new article:
Steve Reitmeister (aka Reity...pronounced "Righty")
Executive Vice President
Zacks Investment Research
Please login to Zacks.com or register to post a comment.
Why I'm Investing $117,238 In This Stock
-Jeremy Phillips, Motley Fool Chief Technology Officer
This company is growing faster than Apple, Amazon.com, and Google combined. In fact, I'm so confident about its profit potential that I officially promised our legal team I would invest five times more than I own in any other stock. And hold it until at least January 2018. But I'd rather not go on my million-dollar quest alone... so I'm inviting you to join me! You don't have to invest $117,238. But whatever amount you choose to put in, I advise you to do it NOW. Click here to discover my favorite stock!
No it's not "Buy and Hold Forever" or "Buy Low. Sell High." Instead, it rides the most powerful force impacting stock prices. For more than a quarter century, it has nearly tripled the market with an average gain of +26% per year. This has been verified by an independent accounting firm.
You can easily master it in your own home without a class or seminar. Don't miss the unique opportunity that ends Friday, January 17.
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.