Audio Length: 00:16:45

Welcome to Episode #15 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

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. In Part 1 of 2-episodes, Tracey and Kevin discuss the reasons the stock market is weak right now and what you should do if your portfolio has blown up.

In Part 2, Kevin discusses what the technicians and big money managers are saying about the stock market and how much further it may have to fall.

Kevin and Tracey are rare bulls among an otherwise bearish market. Both believe this sell-off will be healthy and reset valuations.

Tracey and Kevin discuss 3 areas that are impacting the market right now including the crude price plunge, manufacturing weakness, and China. Kevin also discusses the chaos in the bond market, focusing on Barclays High Yield Bond ETF (JNK - ETF report) and High Yield Corporate Bonds (HYG - ETF report). Are bonds sending a warning signal?

Even with the sell-off, Kevin and Tracey have favorite stocks right now. Kevin likes tech and healthcare. Tracey likes the consumer discretionary names, especially the restaurants.

Investors have been pouring money into the big, safe names. But how "safe" are Gilead (GILD - Analyst Report), Starbucks (SBUX - Analyst Report) and McDonald's (MCD - Analyst Report)? It was a great quarter by both Starbucks and McDonald’s but Tracey says valuations are high on both companies right now. However, all is not doom and gloom. She’ll reveal her theory on why it's such a great time to be a restaurant chain.