Stock Market Fire and Fury

The S&P made new highs Tuesday getting ever closer to 2500. Then right around noon investors got a case of high anxiety with stocks recoiling a bit, but still in profitable territory.

Just before the closing bell the real fireworks began. That came in the form of some tough talk from the White House that any North Korean aggression will be met with "Fire and Fury".

Since this is an investment publication, we will stay focused on what this means for the market. First, we are used to a lot of bluster from North Korea with no serious action taking place. So, this likely leads to nothing and investors ignore the situation.

Now let's imagine that military action does take place. North Korea is a paper tiger that is easily toppled. (Heck, if you gave me a month with nothing to do, I likely would have a more impressive military arsenal than they do and feed the people and keep the electricity running....but that is beside the point ;-) The reality is that the stock market likes war and typically rises after fighting commences. Some call it a patriotic response by investors.

To be clear, I don't like rooting for war as a catalyst for the stock market. There are plenty of other reasons to be bullish. I just want you to have the correct view of this situation. And that is to realize these issues with North Korea should not cause any continued downside to the market.

Best,

Steve Reitmeister

Executive Vice President, Zacks Investment Research

Sponsor

Most stocks suck!

Of the nearly 4,500 publicly traded stocks on the market today, in fact, no more than fifty of them deserve your time, attention, and money.

Of that small group, only eight are now trading at a price that makes them attractive to buy. In fact, I believe these are the only stocks worth your time and money.

These "Power Elite" stocks knock it out of the park year after year after year because they've tapped into the 3 most powerful forces in the global economy: Addiction. Necessity. And monopoly.

In other words, they sell products that people can't stop buying.

This free video explains why.

Winning Stock Picks from the Top 3 Industries with the Biggest Job Growth

Kevin Matras goes over how to find winning stock-picking ideas in the government's 'boring' economic reports. Read More »

5 Strong Buy Stocks Surging Again

Familiar stocks to buy are surging through new highs. Read More »

Top Stock Picks for the Week of Aug 7, 2017

Tracey Ryniec and Sheraz Mian look at a huge multi-national that is a play on the global economy and a weight loss company. Read More »

Emerging Markets: Ready for Takeoff?

The emerging markets have been down in the dumps for ten years but it looks like their luck is about to change. Read More »

5 Cheap Breakout Stocks Offering Strong Returns

This technique seeks to identify those stocks whose prices are varying within a specific band. Read More »

Sponsor

These Insiders Know Something You Don't

Why are insiders suddenly buying up company stock shares with their own money?

According to legendary investor Peter Lynch, when major officers buy shares of their own companies, there?s only one reason: They expect the stock price to go up.

Zacks distilled a handful of the most compelling insider stock purchases, and is opening them to public view – but only until Sunday, August 13.

See the stocks now >>

Bull of the Day: KB Home (KBH)

Looking for a genuine value stock that also has growth? Read More »

New Zacks Strong Buys for August 9th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Terms | Privacy | Unsubscribe