For Immediate Release
Chicago, IL – August 10, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
How to Play the Next Big Stock Surge
With the S&P slowly climbing back toward all-time highs, investors are wondering how to maneuver their assets going forward. For those exposed to the market surge since the election, it has been rewarding, with returns over 30% in the S&P 500 alone. For those who overlooked the opportunity, there is now an urge to catch up with the rest of the pack. If you are in the later camp I know what you're thinking...
How did I miss out on 30%?!
Maybe you were too cautious because you didn't feel you knew enough about stocks. Maybe it was nervousness about the uncertainty surrounding the administration. Understanding yourself and the psychology behind why you missed out is important. But more important is NOT missing the next opportunity, and NOT being fearful to take the risk that comes with nailing that move.
As we start the second half of 2018, it is paramount to have a game plan. It's very likely that we will see another pullback with some consolidation, before ultimately moving higher. Upcoming pullbacks will be caused by market events that will be fueled by anxious bears. This is the time to strike!
Short-term market risks
1) Interest rates -- Perhaps the biggest fear is how much the fed will raise interest rates this year. Will we see three or four rate hikes in 2018 and if it's the latter, how do markets respond? The recent market dip saw a violent move lower in equities and bonds as rates went higher.
2) Inflation -- As the economy strengthens, inflation starts to creep in. And the more that inflation creeps into the U.S. economy, the more the Fed will want to raise rates. This inflation issue makes risk #1 even bigger in the eyes of investors.
3) Trade War -- The tariffs imposed on China over the last month could be the beginning of a trade war that could seriously damage the markets. However, if Trump can get China to cut a trade deal that would reduce the trade deficit "Bigly" then we could see markets take off quickly.
4) Volatility -- The VIX has been elevated this year, meaning markets are nervous about something. While some risks are obvious, some are often not seen until they show their ugly face. A high VIX signals there is something beneath the covers.
With the Trump victory, smart money had to reallocate their assets to areas that would benefit from a Trump presidency. This reallocation led to violent sector rotation causing certain sectors to surge.
Let's go over some ETF stats since the election:
S&P 500 (SPY): 30% plus
Consumer Discretionary (XLY): 45%
Health Care (XLV): 33%
Industrials (XLI): 35%
Financials (XLF): 40%
Technology (XLK): 55%
Buying Stocks on a Dip
Buying stocks has more risk than buying an ETF, but can lead to greater reward. When markets sell off, we can utilize the Zacks Rank to separate the weaker stocks from the profitable ones. By combing the fundamentals of the Zacks Rank and technical analysis, investors can decipher which stocks to buy and which ones to ignore.
In addition, sell-offs tend to be manipulated by computer-driven algorithm trading that can over exaggerate a move lower. An investor who recognizes this abuse can squeeze a couple more percentage points out of a trade than an investor who doesn't.
Since early 2016 we have seen the earnings recession, the Brexit, the election and multiple trade war headlines. Each time that investors bought the dips they have been rewarded handsomely. This should be a recurring theme for the rest of 2018.
How to Fully Capitalize
A major bounce was already seen in the first half of the year and the next three months might lead to some of the biggest market moves of 2018, so why not profit from them?
In addition to the often irrational stock swings created by headlines, there is another force at play that we can use to our advantage.
Computer-driven High-Frequency Traders (HFTs) continue to push down worthy stocks and then profit from the rebounds. We can profit, too.
That is the mission of my portfolio, Zacks Counterstrike.
Counterstrike is designed to sniff out when a stock price is moving the wrong way for the wrong reason. We take advantage by buying the best of these unfairly beaten-down stocks. Then when price moves our way, we lock in gains and look for the next opportunity.
We're now holding a few selected stocks that are primed to sweep upward. Our goal is to generate quick and consistent double-digit gains. Recently, in fact, we've closed gains of +47.0%, +25.1%, and +15.9% in as little as 1 month.
Look into this portfolio today and as an added bonus you may download our Special Report, 7 Stocks Set to Double. It spotlights 7 companies Zacks experts predict could grow +100% or more over the next year.
Important: To maximize the profit potential of our recommendations, we must limit the number of members who have access to the Counterstrike portfolio and 7 Stocks Set to Double. This opportunity ends on Sunday, August 12.
See Counterstrike and 7 Stocks Set to Double Now >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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 does not engage in investment banking, market making or asset management activities of any securities. 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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.