Stocks Down Amid Profit Taking  Image: Bigstock Stocks closed lower across the board yesterday. And they are poised to close down for the week, sans a rally today. The news points to rising bond yields for pressuring stocks. And psychologically, that may be true. But given that Fed Chair Jerome Powell, after two days of testimony before the Senate and the House on Tuesday and Wednesday, essentially said that rates aren't going anywhere anytime soon, this narrative is misguided, in my opinion. I would chalk this up to typical profit taking after a spectacular run-up. It should be known that stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) And stocks usually pull back -10% on average of about once a year. (A decline of -10% (actually -10% to -19.99%) is called a correction.) So we've all lived thru these types of things time and time again. Of course, pullbacks and corrections are never fun. And nobody knows that's what they are/were until they're over. But with forecasts for full-year GDP to come in at the fastest pace in 38 years, it sure looks like a buying opportunity to me. And with falling case counts, more vaccines hitting the market, more people getting vaccinated, and more big cities coming off of lockdown and letting businesses open, it looks like there's a lot more upside to go. So make sure you're taking full advantage of it. Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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