LPL Research Market Signals Podcast

The Correction Continues

LPL Research

The NASDAQ had its fastest 10% correction ever after early September stock gains. More consolidation could be in the cards as we look at a possible K-shaped recovery. Plus, stocks are sending signals on potential election outcome.

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LPL Financial Research strategists discuss recent stock weakness and why a little more consolidation or weakness could be in the cards—but with the economy still quite strong, it also could be a nice buying opportunity for some investors.

Nasdaq in the news

The Nasdaq had its fastest 10% correction ever from a new high, yet previous fast corrections have been followed by really strong performance. As a result of the strong economic data, LPL Research has upped its fair-value target range on the S&P 500 Index to 3,450–3,500.

Chart - Fastest Corrections From All-Time Highs For The NASDAQ

What type of recovery is it?

The official recession is likely over, but a recession is here to stay for some parts of the economy, while other parts seem to be soaring. This may be a “K-shaped” recovery, which means the economy goes two ways at once. Some parts of the economy are growing, while others are still struggling.

Election talk

With the election less than two months away, the LPL strategists take a look at some potential clues for who might win. Wage growth, stock performance, the US dollar, and Gallup polls—there’s data for everyone and everything, but the bottom line is this election is closer to a coin flip in our opinion.

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.

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IMPORTANT DISCLOSURES

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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