Seasonal tailwinds. Seasonal tailwinds have carried stocks this late in December in the absence of other headlines. The S&P 500 Index has climbed 0.6% this week through Thursday, poised for its 11th weekly gain in 12 weeks. Stocks’ persistent rally over the past two months has pushed the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite to new highs. Technology shares’ recent run has been especially impressive: The Nasdaq Composite has closed at 10 consecutive record highs for the first time since 1997.
Sentiment check. The S&P 500 is up about 32% year to date (on a total return basis), poised for its best year since 2013. We’ll see if stocks can push higher over the next few trading days and surpass the S&P 500’s 32.4% gain in 2013. Participation remains strong in the United States and abroad, a good sign for the health of the market. As we head into 2020, overly optimistic sentiment may be the biggest technical risk to watch.
Year of the consumer. At the beginning of 2019, trade tensions were heating up, and recession calls had grown louder. Many investors saw the end of the business cycle coming as the expansion was on the cusp of becoming the longest on record. Then, the consumer showed up in a powerful way. Today on the LPL Research blog, we’ll look back at the U.S. economy’s steady growth in 2019, and outline our expectations for the upcoming year.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.
All company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges, Index performance is not indicative of the performance of any investment.
Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
All performance referenced is historical and is no guarantee of future results.
This research material has been prepared by LPL Financial LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL is not an affiliate of and makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking # 1-931512