We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plus New Zacks Strong Buys for Friday, February 28
Profit from the Pros By Kevin Matras Executive Vice President
Stocks In Correction Territory, Why Now Could Be A Great Time To Buy
Stocks closed sharply lower yesterday, putting all of the major indexes in correction territory.
What is a correction?
It's a pullback between 10% to just under 20% (19.99%). (A pullback of 20% or more is defined as a bear market.)
Corrections in bull markets are normal and healthy. Granted, it doesn't feel normal or healthy when it's happening. But it's a common occurrence.
Over the last 40 years, there's been 13 corrections prior to this one. The average size is about 14.5%. And the average length is about 3.5 months.
This correction however only took 6 days. And it's currently down 12.03%.
For perspective, this bull market, which is nearly 11 years old (the longest bull market is 12.3 years, so we've still got more to go before this one breaks the record), has already had 5 corrections including this one. Again, a common occurrence.
The only reason why this one feels so scary is because it happened so fast, and it's coinciding with a health scare – the coronavirus.
But quite frankly, they all feel scary. The last one we had was in Q4 of 2018. Remember that one? Everybody was calling for a recession because of the so-called trade war and tariffs. Total nonsense. Yet the correction happened anyway. But so did the epic rally that followed.
Will there be more downside? It's possible.
But the current correction is not that far off from the average.
And a correction is all I think this is.
Because in spite of the coronavirus worries, our economy is in great shape with a strong GDP, unemployment at a 50-year low, household income at a 20-year high, and consumer sentiment near record highs.
Let's also not forget two record trade deals with our top 3 trading partners that are poised to usher in a wave of new growth and prosperity.
And when the worst of this outbreak is finally behind us, stocks are expected to soar as pent-up economic demand is unleashed.
So make sure you take full advantage of this correction.
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
Suddenly, 4 key insiders bought over $1 million in their company's stock. They already receive stock options as part of their compensation, but they're scooping up even more on the open market. This kind of activity can only mean one thing:
Those "in-the-know" expect a major price jump.
Don't miss your chance to make the most of this and a handful of other compelling opportunities. Check Zacks' insider portfolio before it closes to public entry Sunday, March 1.
Investors who don't want to stay on the sidelines, with the yield on the 10-year U.S. Treasury note near all-time lows, now is the time to hunt for stocks. Read More »
Advancement in technology, availability of high-speed Internet connectivity and mobile versions of popular PC games bode well for the future of the industry. Read More »
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.
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »
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 February 3, 2020. 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 support@zacks.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately:
_tech_12034_565x377.jpg)
Stocks closed sharply lower yesterday, putting all of the major indexes in correction territory.
_cyber_security_4140_75x75.jpg)
