Five Takeaways From Current Volatility

December 10, 2018 | posted in: Blog, Financial Insights, LPL Weekly Market Commentary | by

According to LPL Research, “Last week was a tough week for stocks, with the S&P 500 Index down 4.5%, the worst performance since March. So what are some things investors should consider? To help answer that question, here are five takeaways on the near-term outlook for stocks.

  1. We continue to see the U.S-China trade dispute as the biggest headwind for stocks.
  2. Leading economic indicators are still pointing positive.
  3. Risk of a Fed policy mistake has eased.
  4. Oil has been a supply problem.
  5. Progress has been made toward putting in a bottom.

LPL Chief Investment Strategist John Lynch explains, “While we continue to monitor the trends discussed here, we view the fundamentals supporting growth in the economy and corporate profits as still favorable.”

To read more from John Lynch, click here.