Can't Keep a Good Bull Down

Profit from the Pros Can't Keep a Good Bull Down This is Tracey Ryniec filling in for Steve. He'll be back on Tuesday. The US economy grew less than expected in the second quarter coming in at just 1.2%. Combined with first quarter's reading of 0.8%, that makes the first six months of this year the weakest for the US economy since the start of 2011. But the consumer was still spending like crazy in the second quarter. Household purchases surged 4.2%, the highest since the fourth quarter of 2014 and one of the strongest quarters since the Great Recession. With much of the economy fueled by consumer spending, that means that the US economy is still growing. Never Bet Against the American Consumer If the first half of 2016 was so gloomy, then why am I so bullish on stocks and the US economy? Our homes are still our castles and Americans are willing to spend on them. The home decorating shows on cable TV are as popular as ever. Thanks to low mortgage rates, home sales, in many cities, are back to record highs, with record high prices. And people are buying cabinets, faucets, refrigerators, new windows, flooring and furniture. It's all a stimulus for the economy. The S&P 500 hit new highs to end July even though the GDP report wasn't stellar. Stocks like to climb a wall of worry and that worry is very apparent. I'm a contrarian investor, so all the bearishness about the new highs in the stock market is bullish to me. The US economy isn't going into a recession right now. We saw a slowdown over the winter, which coincided with the lows in crude. Most companies in the last few weeks, outside of energy, have said that conditions, while still "challenging" have improved in the last few months. Earnings are starting to show some improvement, albeit coming off of the lows of an earnings recession which has lasted the last 5 quarters. But that's all this stock market needs to move higher. That's why I'm staying fully invested this summer even though it's not easy to be a contrarian. Are you one of those who has been paralyzed by these uncertain market conditions? Kevin Matras talks about how you can trade with confidence, no matter what is going on on Wall Street, in [Applying Your Best Decisions on Every Trade.] Best, Tracey Ryniec Stock Strategist at Zacks Investment Research , Zacks Investment Research Sponsor [Only Zacks' Hottest Trades. Only $5.] Others pay thousands of dollars to see such privileged, sensitive information. But starting now, you can receive a hand selection of the Best of Our Best, just 2-3 buy recommendations each week at a tiny fraction of their worth. Access to these exclusive trades costs less than any other Zacks' service. No wonder it's by far our most popular. [See Trades Now >>] Most Popular Articles from Zacks.com [Best ETFs of July] Inside the top performing ETFs in the last one-month period. [Read More »] [Apple iMessage Will Bring Millions to Mobile Marketing] Apple opening up iMessage to developers will pay off bigtime for marketing firms like Snaps. [Read More »] [U.S. Banks Hold Good Prospects for Long-Term Investors] Banks have learned to take the low-rate environment in stride and have earned significant fundamental strength by reorganizing their business models. [Read More »] [Dow 30 Stock Roundup: Apple, GE, DuPont Beat, Boeing Posts Narrower-than-Expected Loss] The Dow slipped over an earnings heavy week, where results took precedence over other developments. [Read More »] [Zacks Friday Finish Line: Earnings Season Continues!] On today's episode of the Zacks Friday Finish Line podcast the hosts talk about Oracle, Verizon and Yahoo, and earnings from Twitter, Amazon, Facebook, Apple, and Alphabet. [Read More »] Sponsor [Start Every Day Ahead of Wall Street] Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks' analysts, each daily article features a preview of where the market is headed. Plus, Bull and Bear stocks of the day, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news>>] [Bull of the Day: Euronet (EEFT)] This growing money network is expanding rapidly. [Read More »] [Bear of the Day: Wells Fargo (WFC)] With a herd of downward estimate revisions, this is one stock that won't take your portfolio to the next stage. [Read More »] [New Zacks Strong Buys for August 1st] 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}