Melt-up or Melt-Down?

February 6, 2018 | posted in: Financial Insights, LPL Weekly Market Commentary | by
Did stocks just melt-up, setting up a possible melt-down?

Friday’s sharp decline, the biggest since the Brexit vote in June 2016, might have led us to forget that just a few days ago many claimed the stock market was melting up. The strong finish to 2017 followed by big gains in January certainly made this a reasonable characterization. (Though we continue to believe stock valuations are well supported by fundamentals here.)

Key takeaways include:

  • Friday’s sharp stock market decline might have led us to forget that just a few days ago many claimed the stock market was melting up.
  • Now concerns have turned to whether last week’s sell-off is the start of something much bigger.
  • We discuss whether stocks have melted up or if they are about to melt-down, and share some thoughts on the sharp move higher in interest rates.

Click here to read more from John Lynch Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, of LPL Financial.