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Plus 5 New Strong Buys for Today
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Down Again, Stimulus And Economy In Focus

Stocks closed lower again yesterday with the tech-heavy Nasdaq leading the way.

Rising bond yields are again being pointed to as weighing on stocks as some worry that future inflation could cause the Fed to raise rates sooner rather than later.

But it's worth repeating that Fed Chair Jerome Powell has previously said rates are likely to stay near zero for the next 3 years, and just last week, in testimony before Congress, he essentially said that the Fed has no plans to raise rates anytime soon, and that their asset purchases will continue for the foreseeable future.

In fact, he expressed more concern over the lack of inflation than inflation rising.

I believe what we are seeing is just normal profit taking and an ordinary pullback taking place.

Stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) So it's quite common.

There could also be some unease over stimulus talks. While Congress has said they are determined to pass something by March 14th, which is when millions will begin losing some of their extended federal unemployment benefits, nobody expected last year's bill to drag on forever either.

In the meantime, the economy is doing well. The Atlanta Fed is estimating Q1 GDP to come in at 10.0%. And other forecasts have full-year GDP growing at the fastest pace in 38 years!

And with virus case counts dropping, more people getting vaccinated, and more and more big cities and states loosening restrictions and allowing business to open, we should see big pent-up demand unleashed.

That's bullish for the economy and the market.

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 poised for historic growth, 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 just about investing in pot growers. It's also 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...

Investors: The Marijuana Boom Is Now


Kevin Matras

Executive Vice President, Zacks Investment Research


Do you have this weird tech on your phone?

"What is that thing for?" my friend Dave asked when he saw my new iPhone 12 Pro. He was talking about the weird extra lens on the back. It has nothing to do with taking pictures... But it is the key to a $350 billion tech revolution. And this technology will make today's smartphones and computers obsolete by 2022. Let me show you what this lens does (it will blow your mind!) and why it holds the potential for up to 10,000% gains.

Click here for the full story.

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Ready for the Pot Stock "Gold Rush"?

Legalized marijuana, with almost unimaginable profit potential, has won a clean sweep of 6 election referendums. This trend covers all of Canada, down through 36 states plus D.C. New York and Mexico are poised to follow. Federal legislation is about to be proposed that could really open the U.S. floodgates, triggering the creation of new companies and causing many existing stocks to blast off.

Global sales are predicted to skyrocket from $19 billion in 2020 to an expected $73.6 billion by 2027.

Zacks recently closed a +147.0% marijuana trade, and is currently riding several triple-digit gains that should still have a long way to run. Plus, new stocks are being lined up that could rival or surpass these performances.

See Zacks' recommended buys now >>

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