Investors Load Up on Crash Insurance

Profit from the Pros Investors Load Up on Crash Insurance Stocks flirted with another breakout at 2100 Wednesday and then got a serious case of vertigo. From there shares tumbled back to breakeven...then kept falling further into the red. The obvious reason is the fear of the Brexit vote on Thursday. Even though the Remain camp seems the most likely outcome, some investors are still fearful of a Leave vote. That is why the VIX soared 14% as some folks wanted to load up on a bit of crash insurance. Also Treasury bond rates fell, which is usually a sign of higher demand for safe investments. [According to Oddschecker] 57% of the bets are being placed on Remain while only 43% are going for Leave at around 3 to 1 odds. Thus, a Leave vote would be a surprise that could have nasty consequences for European stocks that would likely have spillover effects to other international markets. Unfortunately the voting results will not be known until late Thursday evening in Britain, and thus well past the US closing bell. So Friday is when investors will have the final tally and can react to the outcome. My money rides on a Remain vote coming in giving stocks a green light to retest recent highs. New highs will likely have to wait until further proof of economic health appears from the early July announcements: ISM Manufacturing (7/1), ISM Services (7/5) and Government Employment Situation (7/8). Some influential investors don't think Brexit or these economic reports matter at all. They are telling people to start selling stocks now. Find out why in the following article: [4 Giants Who Say "Sell"] Best, Steve Reitmeister Executive Vice President, Zacks Investment Research Sponsor [Today, See Zacks' Top Stocks for Free] Starting now, you can get instant access to the latest picks from our market-beating strategies that produce average gains of +20.6%, +31.1%, +54.7% and +57.6% per year. Plus, with this program, you can create your own strategies and know how the stocks are likely to perform before you invest in them. Zacks will also give you a free Special Report, Top 5 Valuation Secrets, which could dramatically change the way you invest. [Learn more now >>] Most Popular Articles from Zacks.com [What's the Best Internet Stock for the Summer?] Choosing a stock in a market with a large number of variables can be tricky. But when you've got the Zacks Rank as guide, you need look no further. [Read More »] [4 Stocks to Buy on Yellen's Valuation Warning] This is not the first time that Yellen has weighed in on equities being overvalued. [Read More »] [Secret Dividend Stocks with Incredible Yields] Dividends aren't boring. Tracey and Neena discuss unknown stocks yielding over 5%. [Read More »] [Will Technology Disrupt the Music Business Further?] While changes are ongoing, I think both models will co-exist at least over the next few years. [Read More »] [Mid-Cap ETFs to Take Lead Ahead?] With uncertainty in the domestic and foreign markets on U.S. growth and Brexit issues, investors can bet on these mid-cap value ETFs. [Read More »] Sponsor [Are We Heading Into a Bear Market?] Strong evidence suggests that the aging 7+ year bull is on its last leg. The time to protect yourself is NOW, before the market drops through the floor. Zacks has created a Bear Market Game Plan to help you recognize the signs, prepare in advance, and actually profit from the coming downturn. Last time the bear struck, it wiped out 58% of the stock market's value. Investors were devastated. Retirements were postponed for years. Make sure this one doesn't catch you by surprise. Deadline to receive our urgent Special Report is Sunday, June 26. [Download Zacks' Bear Market Game Plan Free >>] [Bull of the Day: B&G Foods (BGS)] Make this food stock your portfolio staple. [Read More »] [Bear of the Day: PotashCorp (POT)] Is more pain ahead for this fertilizer giant? [Read More »] [New Zacks Strong Buys for June 23] Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »] [Customize Your Profit from the Pros Delivery] Connect with Us: [Facebook] [Twitter] [StockTwits] Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com] [Terms] | [Privacy] | [Unsubscribe] [Zacks] You are registered to receive this "Profit From The Pros" e-mail newsletter at {EMAIL}