Back to top

Real Time Insight

The problem investors have been tackling for months is whether the market deserves to trade at new highs above S&P 1850, or if a significant correction is over-due.

What is quite possible is that the correction has already occurred in growth indexes like the Nasdaq and Russell 2000 and institutional investors have rebalanced to find the right blend of growth and value they want going forward.
If this assumption is correct, it could turn out that May is actually a month to buy this year, not sell.
Now you may also believe that the Nasdaq "correction" hasn't been that severe if you just look at the index dropping only 8% from its highs. But clearly that is the bulk of the big cap Nasdaq 100 holding up vs lots of smaller high-beta names that have been cut in half.
Here's a chart which illustrates the severity of the "correction in growth" this year...

So, my question of the day is whether or not we've seen enough "correcting" for the fundamental tailwinds -- and investor appetite for stocks -- to resume pushing the market to new highs in May.

Just Released: 5 Stocks to Double

Today, you are invited to download a free Special Report from Zacks Investment Research. It reveals five moves that could gain +100% and more in the next 12 months:

One is a "boring" business delivering blistering growth. Another is a red-hot oil and gas producer set to surge on a drilling breakthrough. Still another, an online payment provider, ignited a 53% sales explosion during the past year.

Close This Panel X

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%