How Low Will The SaP 500 Go? - Zacks Market Edge Podcast 15 - Part 2

In this episode, Tracey is joined by Zacks Stock Strategist, Editor of the Tactical Trader and the Follow the Money Trader, Kevin Cook. The stock market is in the midst of a pullback. There’s so much going on in the stock market right now, that Tracey and Kevin recorded two episodes of the podcast. This is Part 2 of their discussion on what you should do now that stocks are selling off. In this episode, Kevin and Tracey discuss what the technicians and big money managers are saying about the stock market and how much further it may have to fall. Some numbers being thrown out, such as SaP 500 at 1300, are pretty darn scary. Street sentiment is obviously very bearish. But Kevin has noticed that recently several big money managers have gotten even more bearish, including Guggenheim Partners Global Chief Investment Officer, Scott Minerd. Minerd is usually middle of the road and is not a perma-bear. So what does that mean? Kevin has also run across some interesting trends in the SaP 500 this year. He explains the difference between the equal weight SaP 500 index and the market weight index (SPY) and the significance of the equal weight SaP 500 hitting February 2014 lows while the market weight index is barely at October lows. Tracey tracks the Russell 2000 small cap index for clues about market trends. The small caps have been a disaster in 2016. Does she see any signs that the small caps have bottomed? Kevin and Tracey like to use ETFs when there is a lot of volatility and these market conditions are no exception. Kevin likes the healthcare stocks. His favorite ETF in that sector is the Powershares Dynamic Pharmaceutical ETF (PJP), which combines big cap biotechs with big cap mainstream drug stocks. To play the small caps, Tracey says you can always invest in the general iShares Russell 2000 ETF (IWM). But she also likes the more niche ETFs, Vanguard Small-Cap Value ETF (VBR) and Vanguard Small-Cap Growth ETF (VBK). She discusses which one of those is her favorite and why. I bet you can guess. Find out all you need to know about this market sell off from Zacks experts, Tracey and Kevin, on Part 2 of this week’s podcast. SPDR SP 500: POWERSHARES DYNAMIC PHARMACEUTICALS PORT: ISHARES RUSSELL 2000 ETF: VANGUARD SMALL-CAP VALUE ETF: VANGUARD SMALL-CAP GROWTH ETF: Follow us on StockTwits: Follow us on Twitter: Like us on Facebook:

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