LPL Research Market Signals Podcast

A Bit of Post-Election Stability

LPL Research

The economy is finding stability from more clarity on the elections and a possibly split Congress. Global markets are soaring on promising vaccine news, and the Fed says it will continue to be supportive.

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It’s possible that Joe Biden may be the next President of the United States, but Congress will likely remain split. They say gridlock is good, and so far, stocks have soared higher. But better news on the vaccine and economic front has also sparked the bulls. This week, the LPL strategists discuss what it all means and why new all-time highs could be right around the corner.

Gridlock is good

Republicans added seats in the US House of Representatives and will likely maintain control in the Senate. This significantly lowers the chances of higher taxes and more regulation, and stocks historically have done quite well when Congress is divided.

Great news on the vaccine front

Monday morning Pfizer and BioNTech announced that their COVID-19 vaccine had a more than 90% efficacy rate, which is much better than expected. This could be a game changer in the battle against COVID-1, and we could be much closer to opening the economy back up than expected. As a result, many of the market’s economically sensitive areas are soaring.

Economic momentum continues

There are many worries out there, but the US economy continues to improve. Just last week, manufacturing data came in near a two-year high, while jobs and services data both impressed. But it’s the earning season that might be the most impressive, as more than 85% of S&P 500 companies have beaten earnings expectations—a record.

Chart - Historically, A Split Congress Has Been Positive For Stocks

Tune in now

Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunesGoogle Play, or Spotify.




This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 


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