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Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Down On Inflation Concerns And Middle East Tensions

Stocks closed sharply lower across the board yesterday.

The catalyst that everyone is pointing to is the inflation report we got yesterday morning. The Consumer Price Index showed a larger than expected rise in consumer prices with a 0.8% m/m increase vs. expectations for 0.2%, and a 4.2% y/y increase vs. views for 3.6%.

Quite frankly, none of this should come as a surprise. Everyone has been saying we're going to see an uptick in inflation. In fact, it's desired.

But given the fact that we haven't even passed the infrastructure bill yet, nor the Families Plan, which together has a combined proposed price tag of roughly $4 trillion, some are getting antsy that all that extra money could overheat the economy more than expected.

Fair enough. But that's a ways down the road.

However, when you add the CPI report to an already uneasy market given the run-up in gas prices, the rising tensions in the Middle East, and last week's disappointing employment report, the market was ripe for a pullback. And that's what we're seeing now.

These types of pullbacks are never fun. But they are healthy nonetheless. And it will give people a chance to pull profits. And ultimately pick up stocks at cheaper prices to position themselves for the next leg up.

Make sure you keep focused on the big picture. Remember, people are talking about inflation because they are expecting the economy to accelerate. Because they are expecting to see full-year GDP come in at the fastest pace in 36 years or greater. Those things are bullish.

That means big economic gains. And that suggests big market gains as well.

So keep that in mind.

Use this time to get into your favorite stocks at better prices, and to get into new stocks at cheaper prices as well.

Because once this pullback is over, it could lead to brand new highs, just like all the other pullbacks did.

In the meantime, consider using this opportunity to brush up on the cryptocurrency boom.

Whether you care about cryptocurrencies or not, you should care about the blockchain technology that helps run it. In fact, more and more companies are using blockchain in their businesses as it provides an incorruptible digital ledger for all types of transactions and data transfers -- from financial, to shipping, to health records, and more.

It's revolutionizing virtually all industries that rely on security, cost efficiency, and speed. And the companies using it are as impressive as the companies providing it. This includes titans of industries like IBM, Intel, and Nvidia, and plenty of innovative start-ups as well. This must-have technology has created an explosive industry and is poised for massive gains.

And it's also a smart way to participate in the booming cryptocurrency market as well. To learn more about how the blockchain technology is shaping the way companies do business, and more importantly, how to profit from it, be sure to check out our latest commentary...

5 Ways to Play the New Crypto Craze


Kevin Matras

Executive Vice President, Zacks Investment Research


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