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Zacks #1 Stocks on the Move 05/17/2013

Company Name Symbol %Change
VIASAT INC VSAT
19.35%
OLD SECOND B OSBC
5.76%
GAMCO INVEST GBL
4.61%
CORNING INC GLW
4.47%
SYNCHRONOSS SNCR
4.23%
Zacks ZACKS.COM
PROFIT from the PROS

Tactics that Work in Good Markets and Bad
 
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4 Reasons Why the Bull Market Rolls On

All those begging for a pullback to get on board this bull keep getting the door slammed in their face. Sure there is always a pullback somewhere, somehow. But what good is a 3% pullback if it doesn't come until after the market goes up another 5-10%???

What's important is to discuss the fundamental merits of why the market is moving higher. That can be broken down as follows:

1) US GDP is accelerating as can be seen by Q4's +2.8% showing. Recent job growth and economic activity points to more of the same in the future.

2) Europe is likely already in a recession. But they are not falling off a cliff. And they are not dragging us down either. (Again, reference point #1 above to see the non-effect they are having on our economy).

3) Corporate earnings are healthy with $104 EPS expected for the S&P 500 this year. A traditional market multiple of 14-15 would say that fair value is 1456 to 1560. Not there yet.

4) Cash is trash and ultra-safe 10 year Treasury bonds still pay just 2%. Gold isn't going anywhere soon. And neither is real estate. In that light, stocks are even more attractive versus all other reasonable investment alternatives.

So are you on the bull train or under the train?

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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