A Tough Week, But There Are Positive Signs Ahead

LPL Research points out that it has been another tough week for stocks…but that there are reasons to “encourage long-term investors to embrace this volatility, not fear it, especially against a backdrop of solid fundamentals.”

Key takeaways include:

  • The S&P 500 fell about 4% last week amid a myriad of concerns, among them possible peak earnings and a potentially overly aggressive Federal Reserve.
  • Historical market patterns suggest solid prospects for a late-year rally remain in place.
  • We see several positives that may help stocks make another run higher, including moving past the upcoming midterm elections, the solid U.S. economic backdrop, and a still-strong earnings outlook

To read more from John Lynch Chief Investment Strategist, Jeffrey Buchbinder, CFA Equity Strategist, and Ryan Detrick, CMT Senior Market Strategist, LPL Financial, click here.