You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rough Start To The Week, Trade Fears Weigh On Stocks
Stocks got off to a rough start yesterday with the major indexes down about -1.25%.
Continuing trade fears weighed on stocks.
While the new tariffs don't begin until September 1st at the earliest (that's assuming they even go on and aren't suspended ahead of the scheduled trade talks later that month), it's the uncertainty over what comes next that seems to have the market unnerved.
Because it sure isn't the economic impact of the tariffs, as it's been estimated they'll only shave four tenths to a half percent off of our GDP.
And with our economy on pace to grow at 2.6% this year, a half percent is not going to hurt us. In fact, we'd still be growing at a faster pace than the average annual GDP of this whole expansion.
Fact is, the U.S. economy remains the envy of the world.
Unfortunately, there are real slowdown concerns elsewhere in the world. But that's why central banks around the globe are lowering interest rates and pumping stimulus into their economies. And that's one of the reasons why the Fed is likely to keep cutting rates here at home just to keep up.
But those are all bullish for the economy.
We may see more volatility as we approach the September 1st tariff deadline, the continuing trade talks later that month, and the next FOMC meeting in mid-September where we'll find out if they cut rates again.
But I would continue to look at any pullback as a buying opportunity.
As I've said before, these are historic times for our economy and the market.
And it looks like there's a lot more upside to go.
See you tomorrow,
Executive Vice President, Zacks Investment Research
Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com.
Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.
Get all of our market insights and much more when you connect with us.
This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through June 3, 2019. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed above.
Zacks Emails If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email email@example.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately: