QE3 Need Not Apply

Kevin Cook here for Steve. Seems the White House needed him again for some portfolio fine-tuning. I just hope he gets a chance to give the President my second quarter buy list.

Monday's emerging breakout in the S&P above 1,420 began Tuesday as a typical post-surge back-and-fill day, which was fairly predictable since we have few near-term catalysts until earnings season kicks off next week. Then a little report known as the FOMC minutes showed up at 2pm, sparking a 10-point sell-off to 1,404.

And it was played as perfectly predictable by many Fed-wise investors and traders who knew to expect little encouragement about any "QE Next" possibilities. They were willing to let the sellers dominate the session so that they could pick up some more shares at better prices. The headlines like "VIX Surges Above 16!" went quietly back into their holes as we settled back near pre-minutes levels.

While many investors believe all the best possible news is priced into the market, I am still in the camp that this economy and corporate earnings can continue to surprise to the upside. And we don't need another round of QE to make it happen. We only need transparency and the certainty that Big Ben is there with the heavy artillery just in case.

Growth and stability are back. And if it's "artificial" stimulus or consequent inflation some are worried about, I say this: You don't get a "re-do" on saving the economy and creating jobs. If you give up the stimulus back-stop now to prevent a temporary battle with inflation, you run the greater risk of losing the entire war to the bottomless pit of deflation. Dramatic? Maybe. But also true.

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Best,

Kevin Cook
Senior Stock Strategist, Zacks Investment Research

Today's Top Stories: Wednesday- April 04, 2012

ZACKS RANK BUY STOCKS

• Aggressive Growth - Lindsay Corporation (LNN) reported revenue of $132 million roughly $3 million more than the Zacks Consensus Estimate. EPS was $0.17 ahead of the estimate or a 20% beat. Read More...
   
• Growth & Income - Cooper Industries plc (CBE) analysts believe they will deliver solid double-digit EPS growth over the next few years. On top of this, Cooper pays a dividend that yields a solid 1.9%. Read More...
   
• Momentum - ARM Holdings Plc (ARMH) has surprised analysts to the upside 3 quarters in a row an average of almost +11.37%. The consensus is for the company to grow earnings by 22% in the current year. Read More...
   
• Value - Robbins & Myers, Inc. (RBN) recently reported strong fiscal second quarter results that surprised on the Zacks Consensus by 13.5%. This Zacks #1 Rank (Strong Buy) is a value stock with a P/B ratio of 2.2. Read More...
   

Learn how to profit from our exclusive Zacks Rank stock-ranking system with free resources. Read More...

• Top 5 Zacks #1 Ranked Precious Metals Funds Read More...
• Top 5 Best Performing Energy Funds Year to Date Read More...
• Van Eck Launches International High Yield Bond ETFRead More...
• Fund Homepage

• Bull Of The Day: Caterpillar, Inc.
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• Bear Of The Day: POSCO - ADR
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• Ahead of Wall Street
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• Zacks Industry Outlook: Alt-Energy Stock Outlook - April 2012
  A major growth area in this space is Solar Energy. The U.S. has a lot of catching up to do, despite enormous potential, to get anywhere close to the global leaders. Read More...
  
  
• Analyst Blog Highlights
• Deal Wins Continue at Accenture
• Canadian National & CSX Link Up
• US Carriers Impress Despite Costs
• Full Analyst Blog

• Value Stock Picks-Apr. 3, 2012
• Roundtable Top Picks for the Week of Apr. 2nd
• New Quarter Outlook

PeopleAndPicks.com:

VIP "InvestmentMAGE" continues his climb to the top of the leaderboard with his BUY calls in (CSX), (HAR), (HAS) and (MAT). Read More...

• Federal Reserve leaning away from QE3 @ CNNMoney.com
• Obama Runs From His Record on the Economy: Opinion @ TheStreet.com
• Facebook Fires Back at Yahoo with Patent Counterclaim @ FOXBUSINESS.com
• Game changer: Nike unveils new NFL gear @ MarketWatch.com

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