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.
Profit from the Pros By Kevin Matras Executive Vice President
Stocks Down Amid Profit Taking
Image: Bigstock
Stocks closed lower across the board yesterday. And they are poised to close down for the week, sans a rally today.
The news points to rising bond yields for pressuring stocks. And psychologically, that may be true. But given that Fed Chair Jerome Powell, after two days of testimony before the Senate and the House on Tuesday and Wednesday, essentially said that rates aren't going anywhere anytime soon, this narrative is misguided, in my opinion.
I would chalk this up to typical profit taking after a spectacular run-up.
It should be known that stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.)
And stocks usually pull back -10% on average of about once a year. (A decline of -10% (actually -10% to -19.99%) is called a correction.)
So we've all lived thru these types of things time and time again.
Of course, pullbacks and corrections are never fun. And nobody knows that's what they are/were until they're over.
But with forecasts for full-year GDP to come in at the fastest pace in 38 years, it sure looks like a buying opportunity to me.
And with falling case counts, more vaccines hitting the market, more people getting vaccinated, and more big cities coming off of lockdown and letting businesses open, it looks like there's a lot more upside to go.
So make sure you're taking full advantage of it.
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
When in-the-know officers dip into their own pockets to buy shares of their own company, there's only one reason: They expect the stock price to go up.
Zacks is now targeting insider moves that include a telling "cluster buy" in a leading industrial firm. Four highly-placed insiders just bought over 6,000 shares to take advantage of an opportunity they see. It's time to get in on this action.
Our recommended insider trades are normally closed to public view – but the deadline for you to gain access is midnight Sunday, February 28.
Even if the rates rise to the highest level forecasted, they would still be attractive enough to keep the housing boom continuing for the next few quarters. Read More »
Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance.
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 January 4, 2021. 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:
