Market Commentary

The key factor for stocks in 2019

April 1st, 2019
  |  

Reviewing a timeline of the Federal Reserve’s statements and
actions – and comparing them to equity market action – makes it pretty clear to
me that the Fed is the single most important factor for stocks in 2019.

Long-time readers know that for Zacks Investment Management,[…]

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What to do when growth stocks stop growing

March 25th, 2019
  |  

The broad outlook for U.S. corporate earnings is getting
weaker, seemingly by the day.

For Q1
2019, total S&P 500 earnings are expected to decline -3.6% from the same
period last year, though on +4.8% higher revenues. Growth is expected to be
negative for 9 of the 16 Zacks sectors,[…]

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Remembering the beginning of this bull market

March 18th, 2019
  |  

The 10-Year Old Bull
Market

It’s hard to
believe that 10 years have passed since the end of the “Great Recession.” But
it was on March 9, 2009, that the 2008 bear market finally ended. For the
steely-nerved investors who were invested in equities at the time,[…]

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What does the surprising cyclical stock surge mean?

March 11th, 2019
  |  

The S&P 500 spent a single day in bear
market territory on Christmas Eve, but since then the index has rewarded
investors who didn’t panic. As I write this column, the S&P 500 has
steadily rallied over +18% 1 off the bottom,[…]

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Distinguishing between weak growth and negative growth

March 4th, 2019
  |  

Is the U.S. Economy
Showing Real Signs of Weakness?

I’ve noticed recently that many economists and ‘experts’ appear to be resetting their expectations for when the U.S. economy might enter a recession. Many now seem to believe it could happen as soon as this year,[…]

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Volatile market causes many investors to miss January rally

February 20th, 2019
  |  

We’re only in the second month of the new year, but already we’ve seen many investors experience the tragic cost of market volatility.
According to Lipper data, investors moved a staggering $190 billion into money market funds (cash) in Q4 2018.[…]

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The global economy’s biggest X factor in 2019

February 12th, 2019
  |  

Equity markets received some relief in late January, when the Federal Reserve decidedly shifted tone on interest rate increases for 2019. Fed Chairman Jerome Powell said that “the case for raising rates has weakened somewhat,”1 adding that the Fed is increasingly concerned about the effects of policy-related headwinds from trade disputes,[…]

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Investor pessimism could be a plus for the market

February 4th, 2019
  |  

Investor sentiment has made a notable shift over the last two years or so, and the pendulum swing may actually help explain why 2018 was such a disappointing year for stocks.
Flashback to 2017 – the buzzword when describing the global economy was “synchronized global recovery,” referring to the widely-held expectation that all developed economies were (finally) expected to grow convincingly and in unison.[…]

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Who wins with Fed interest rate hikes?

January 28th, 2019
  |  

The Federal Reserve’s decision to raise interest rates at the December 18-19 meeting last year was a source of contention for the equity markets. In fact, just about every rate increase last year (four total) was met with short-term volatility – a reckoning that the era of easy money was officially coming to a close.[…]

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The Market Mover that No One is Talking About

January 21st, 2019
  |  

The sharp and sudden selling pressure that characterized equity market action in December appears to have subsided in the new year – at least for now. In examining the causes of downside volatility, the most commonly cited reasons were fears of an escalated trade war with China,[…]

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