We strongly believe fundamentals are sufficient to withstand this recent bout of volatility.- John Lynch – Chief Investment Strategist at LPL Financial
Last week stocks had their worst week since February and put in a mixed performance out of the gate Monday morning. In this week’s podcast, LPL Research’s strategists discuss why they think the odds are still strong for a year-end rally.
Both the S&P 500 and Dow fell more than 4 percent last week, while the Nasdaq dropped 3.7 percent. The S&P 500 also posted a third consecutive weekly loss—its longest such streak since June 2016—as investors remained concerned over rising US interest rates and geopolitical tensions. From a historical perspective, however, the recent volatility isn’t that unusual for the month of October. Third-quarter earnings are also looking strong, and there are signs that this could be the third consecutive quarter of 20% or greater earnings growth.
Tune in to the full podcast to learn more about the LPL strategists’ perspectives on what they see as a continuing bull market.
Corrections are quite normal, even in bull market years. We have seen three 5-10% corrections so far this year, which is right in line with an average year.
The S&P 500 found support right at its 200-day moving average, a trend line which has provided support for more than two years now.
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