The economic data keeps getting worse, yet stocks have been in the midst of one of the greatest multi-week rallies ever. As the LPL Chart of the Day shows, the S&P 500 Index gained 27.2% in the 15 days after the March 23 lows, the greatest three-week rally since 1933. Take note, this rally took place amid millions of initial jobless claims, while consumer confidence, retail sales, and manufacturing crashed.
“As scary as the headlines have been, stocks are doing well, as they could be trying to sniff out potential better times ahead,” explained LPL Financial Senior Market Strategist Ryan Detrick. “We’ve found that stocks have tended to bottom about five months before a recession ends, so it is actually normal to see stocks improving amid poor economic data.”
In this week’s LPL Street View video, LPL Financial Senior Market Strategist Ryan Detrick discusses these points.
Whether you plan to exit your business or set up a college fund, we collaborate with you to prioritize your next steps and strategize investment decisions to help you achieve them.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (Member FINRA/ SIPC).Insurance products are offered through LPL Financial or its licensed affiliates. Signature Bank and Signature ChicagoWealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Signature Chicago Wealth Management, and may also be employees of Signature Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Signature Bank or Signature Chicago Wealth Management. Securities and insurance offered through LPL or its affiliates are:
Not Insured by FDIC or Any Other Government Agency
Not Bank Guaranteed
Not Bank Deposits of Obligation
May Lose Value
Your Bank (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services.
Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CT,CO, FL, HI, IL, IN, KY, LA, ME, MI, NV, NY, RI, TX, WA, WI.
