Back to top

View the PFP Archive

Profit from the Pros

Tariff Concerns Spook The Market, But Pullback Creates Great Buying Opportunity

Tough day in the market yesterday with all of the major indexes down on average of -2.5%.

The market was ready for smooth sailing after Wednesday's FOMC report where the Fed raised interest rates exactly as the market had expected, lowered the number of rate hikes planned for 2018, and increased the growth outlook for both this year and next.

But word that the White House had ordered $50 billion in tariffs on imported Chinese goods, followed by a sharp rebuke from China where they stated that they "don't want a trade war but are not afraid of it", sent stocks reeling.

I still don't believe a trade war will ensue. But the fear of one spooked the market. I believe it was a classic overreaction, as the market is prone to do. And I still believe the worst of this correction, which began in late January, is behind us. And while that doesn't make the pain of yesterday's rout any less painful, I would still look at these pullbacks as buying opportunities because there's nothing out there fundamentally or technically to even remotely suggest this historic bull market is in jeopardy.

These kinds of dips can be trying. But being able to weather these market gyrations and think rationally can make all the difference.

Traders will be eagerly awaiting more info on the tariff developments -- both from the US and China. In the meantime, I would consider this as nothing more than the market continuing to trace out its correction/consolidation pattern against the backdrop of a busy news cycle.

I would definitely be looking at some bargain hunting at these levels, and even more so if the market backs up even further.


Kevin Matras

Executive Vice President, Zacks Investment Research


Big Stock Move Monday, March 26 at 10:05 am ET

On Monday morning, Zacks' emotion-free "Black Box" strategy will release its next batch of stocks and trigger a wave of buying among a select group of investors.

Last year, this secret formulation of stock traits produced flurries of quick winners, beating the very bullish S&P 500 by 73%. Today you can be first in line for Monday's picks.

See the Latest Computer-Generated Stocks Now >>

Most Popular Articles from

5 Stocks that Boast Superb Earnings Acceleration

These top-ranked stocks are likely to beat on bottom line in their next releases. Read More »

Top Performing Tech ETFs of 2018

These three unique ETFs are up about 50% over the past year and leading the sector in 2018. Read More »

Earnings Estimates Get Cranking

February saw a big correction. What's up with March? Read More »

Fed Raises Economic Outlook: 5 Top-Ranked Momentum Picks

A strong U.S. economy supported by a robust labor market, low inflationary expectations and anticipation of sustained earnings momentum are likely to uplift investor's confidence significantly. Read More »

4 Top-Ranked Tech Stocks Under $20 With Room to Run

Strong earnings and impressive sales imply that the technology sector's hot streak should continue throughout 2018. Read More »


Increase Investment Returns with Free Zacks' Portfolio Tracker

Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions.

Click to Learn More>>

Bull of the Day: Packaging Corp of America (PKG)

A big increase in net margins helps keep earnings estimates moving higher. Read More »

New Zacks Strong Buys for March 23rd

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

Customize Your Profit from the Pros Delivery
Connect with Us:
Contact Info:

Phone: 1.800.767.3771 ext. 9339