Where Might Stocks Go From Here & What To Do About It?

February 13, 2018 | posted in: Blog, Financial Insights, LPL Weekly Market Commentary | by
After an extraordinary two-year period of market calm, the major U.S. equity markets slipped into correction territory last week.

John Lynch, LPL Financial’s Chief Investment Strategist, shares his thoughts on the topic:

“A perfect storm of investor worries collided over the past six trading days, including inflation, monetary policy, and the unwinding of crowded, complex trades. The result was an unprecedented bout of market volatility, highlighted by 1,000-point swings in the Dow Jones Industrial Average and the fastest retreat ever (nine days) from a record level in the S&P 500 Index to a correction.”

Key takeaways include:

  • A perfect storm of investor worries collided over the past six trading days, resulting in an unprecedented bout of market volatility.
  • These experiences provide a good opportunity for investors to reassess current allocations relative to long-term targets.
  • We [LPL] maintain our year-end S&P 500 fair value estimate of 2850–2900, representing a move of approximately 10% from current levels.

Read the complete article here.