Stocks End Down, But Well Off Their Lows

Plus 5 New Strong Buys for Today Stocks End Down, But Well Off Their Lows [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Down, But Well Off Their Lows [Stocks End Down, But Well Off Their Lows]Image: Bigstock Stocks closed lower yesterday, but well off their lows. Some have blamed the weakness in equities on the weakness in cryptocurrencies (bitcoin, for example, was down more than -25% at one point yesterday, before trimming that to a more modest loss of -11.5% by the time stocks closed). Whether it's fair to ascribe all the blame on cryptos (or even any of it) is debatable. But the crypto trade is being called the 'most crowded trade' right now. And a recent Bank of America survey of large money managers found that 75% believe it's a bubble. (I think that word gets thrown around too easily. But it's good to know what's being said.) In addition, the market still had the same 'worries' they did the day before: inflation (although, I think it's premature at best, if not misplaced at this time), Middle East tensions, and the ultimate size and shape of the infrastructure package and the tax hikes that will pay for it. But given the impressive rebound yesterday, the market was able to shrug most of that off. In other news, MBA Mortgage Applications were up 1.2% last week (-4.0% for purchases, and +4.0% for refi's). We also got the FOMC Minutes. In it, it reads that "a number of participants suggested that if the economy continued to make rapid progress toward the Committee's goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases." Although, the minutes also show that "various participants noted that it would likely be some time until the economy had made substantial further progress toward the Committee's maximum-employment and price stability goals." The takeaway: it doesn't look like anything is going to happen to interest rates anytime soon. And if the economy does grow faster than expected and the Committee's goals are reached (max employment, price stability, and let's also include sustained inflation readings over 2% for a meaningful period of time, given that Mr. Powell expects inflation this year to be transitory), then, maybe in the future, they can start talking about the issue of talking about tapering their bond purchases. None of this sounded like a revelation. Quite frankly, it would be surprising if nobody brought it up. I want those in charge to consider those contingencies for the future, regardless of how far off it might be. And the market seemed to take that news in stride as well. Let's also not forget that the only reason why people are talking about inflation down the road is because we're expecting a 'gangbuster' economy. So, before any inflation reading becomes actionable, we're going to have to experience some pretty stellar and sustained economic growth first. That's bullish, and suggests we could be at the beginning of a multiyear boom. To learn how to take full advantage of it, be sure to read my latest commentary... [Are We At The Beginning Of A Multiyear Boom?]( Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Retire on these 3 stocks]( TI've located three stocks that if you buy and hold them forever, they could serve as the backbone to your retirement. Investing in these three stocks starting with even a small portfolio could generate huge dividend windfalls in the years to come. I expect them all to raise their dividends at a double-digit pace so you will snowball your income in the coming years. [Click here to view the three stocks to buy and hold forever.]( Most Popular Articles from Zacks.com [Read this article]( Image: Bigstock [3 Stocks to Snap Up as Computer Storage Devices Show Promise]( Robust momentum in cloud computing, big data, IoT, VR and AI are expected to favor prospects of the Zacks Computer - Storage Devices industry. [Read More »]( [Read this article]( Image: Bigstock [5 Apparel Stocks to Buy as Restrictions Get Relaxed Further]( Although retail sales came in flat year over year in April, sales of apparel have soared. [Read More »]( [Read this article]( Image: Bigstock [Should You Invest In Auto Dealers Right Now?]( Auto dealers, as represented by the Zacks Automotive - Retail and Whole Sales industry have had a great run this year, returning 37.8% to investors. [Read More »]( [Read this article]( [3 ETFs to Protect Against Inflation]( If you're worried about rising inflation, it makes sense to add some ETFs to your portfolio that hedge against the possibility of rising prices. [Read More »]( [Read this article]( Image: Bigstock [Are You a Glass Half Full or Half Empty Investor?]( Buying the stock market weakness? Or staying on the sidelines? Your outlook may determine your investing strategy during corrections. [Read More »]( Sponsor [The 32-Second Options Trading "Training Video" Retirees Can't Get Enough Of]( Options expert Jeff Clark is on a mission to show every American at or near retirement how easy it is to trade options. [Watch his 32-second options trading "training video" here.]( [Read this article]( Image: Bigstock [Bull of the Day: Columbia Sportswear (COLM)]( Columbia's turnaround now appears underway after a strong first quarter that had analysts racing to raise their earnings guidance. [Read More »]( [Read this article]( [New Zacks Strong Buys for May 20th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( 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 is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through April 5, 2021. 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 [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606