Stocks Up, Fed Leaves Rates Unchanged, And Likely To Stay Unchanged Next Year Too

Stocks closed modestly higher yesterday in relatively narrow trading.

But they remain near all-time highs after a spectacular year, and an impressive last couple of months.

In addition to the record-setting economic news, including 50-year low unemployment, and household income at the highest level in 20 years, we are also on the brink of completing an historic U.S.-China trade deal, as well as the USMCA trade deal (considered the largest trade deal in history). No wonder stocks have been soaring.

And all of this is happening with low inflation.

That was underscored by yesterday's FOMC Meeting Announcement where the Fed left rates unchanged, and indicated they would keep rates where they are throughout 2020.

To many, that was a clear signal that the economy is doing well, and likely to strengthen even more given the underlying fundamentals and upcoming trade deals -- so there's no need to cut rates any further. But also, no need to raise rates either given the benign inflation readings at present and looking forward.

Of course, things can change. And the Fed will be there to act accordingly.

But for now, the economy seems to be in a sweet spot with strong growth, record employment, surging corporate profits, an upbeat and strong consumer with rising wages, and again -- all with low inflation.

This is why stocks keep making new all-time highs, and why it looks like there's a lot more upside to go.

So make sure you're taking full advantage of it.

On a separate note, if you're looking for new stock picking ideas in an industry that's also making history, be sure to read our latest article on the booming Marijuana Industry.

These stocks are definitely more speculative in nature. But the number of companies currently offering, or are slated to offer cannabis-related products is growing. This is no longer about investing in pot growers. It's about consumer products, drinks, food, medicine, and more. And with marijuana sales legal in Canada, 33 states, and D.C., it's only going to get bigger!

To learn more about this explosive industry, be sure to read our latest commentary...

Is it Time to Buy Cannabis Stocks?

Best,

Kevin Matras

Executive Vice President, Zacks Investment Research

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A French Winemaker's Secret To Massive Pot Stock Success

Once French wine reached America in the 1800s, French sailors noticed it tasted better than the wine they drank at home. The rolling ocean rocked the casks and softened the wine's flavor. A bit of disturbance yielded superior results. We see a similar dynamic taking place with the legal weed market. 2019 ROCKED even solid, cannabis companies but created an opportunity for stunning gains in 2020.

Here Are The Details On A Smooth-Sailing Pot Stock

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Zacks Responds to Pot Stock "Gold Rush"

Legalized marijuana, with almost unimaginable profit potential, has swept over all of Canada, down through 33 states plus D.C. This brand-new industry is booming from $9 billion in 2017 to an expected $32 billion by 2020. It could soar above $146 billion by 2025.

Not since the Repeal of Prohibition in 1933 has there been such a release of pent-up demand.

Will you be one of the investors to take full advantage?

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