Buy The Dip!

The markets tumbled yesterday with tech leading the sell-off.

Facebook's -7% plunge got the wrecking ball rolling, and everything followed after that.

But I wouldn't read too much into it. FB's bad press over the weekend, which detailed how political parties on both sides of the spectrum accessed millions of user profiles and customer data (either with or without FB's permission – not sure which is worse), sent shares reeling. The other tech companies fell in sympathy. But FB's problems are theirs and theirs alone. And there should not be much follow through collateral damage to tech or other companies and industries. This is a FB problem. And even then, that may blow over just as quick as it started.

Yesterday's decline notwithstanding, the main event this week is likely to be Wednesday's (3/21) FOMC Meeting Announcement where the Fed is expected to raise rates by a quarter point.

Personally, I believe this will calm down everyone's rate fears as it should confirm that the Fed will take it slow when raising rates, giving the market the green light to continue its winning ways.

That being said, we could soon see an end to this recent volatility and start making our way back to January's all-time high before breaking out to even higher highs after that.

Buy the dip!

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

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