Street View: Is a Depression Coming?

Economic Blog

“Could there be another depression” is one of the top questions we’ve received over the past week. “Yes, we are in a recession and many are worried if things may get much worse before they get better,” explained LPL Financial Senior Market Strategist Ryan Detrick. “But we continue to think the double-barrel of support from the Federal Reserve (Fed) and the $2 trillion CARES Act should help to provide a bridge for consumers and small businesses to help get them to the other side of this slowdown. Continue reading

Market Update: Wed, Apr 1, 2020 | LPL Financial Research

DAILY INSIGHTS

More weakness. After wrapping up one of the worst quarters ever for stocks, stocks sold off globally this morning after a somber warning from President Trump. Trump said the United States is facing potentially its toughest two weeks ever, and the White House is projecting deaths between 100,000 and 240,000, even with social distancing in place. Continue reading

Road to Recovery Playbook Factor #1: COVID-19 Case Update

Market Blog

Factor #1 in our Road to Recovery Playbook is finding confidence in the peak of COVID-19 cases in the United States.  At LPL Research we are monitoring this factor daily, and we wanted to provide an update into what we are seeing. As shown in the LPL Chart of the Day, while the number of new cases in the United States has continued to climb, the number of new cases seen outside of the US did drop in recent days before jumping again yesterday. Continue reading

Market Update: Tues, Mar 31, 2020 | LPL Financial Research

DAILY INSIGHTS

Stocks slightly lower after Monday’s solid gains. The five-day rally in the S&P 500 Index at 17.4% was the second best in the index’s history, suggesting a pause may be in order. The latest COVID-19 news is focused on whether hotspots, including Italy, Spain, and New York, have seen the worst of the outbreak, while support for a fourth fiscal stimulus package is building. Continue reading

Will Investors Take Weaker Economic News in Stride?

Economic Blog

We’ve been closely monitoring the details in our Road to Recovery Playbook over the past few weeks, looking for ways to opportunistically take advantage of the sharp pullback in equity prices. The Playbook consists of five factors we are scrutinizing in order to gauge progress toward the market’s bottoming process and to signal an appropriate time to get more aggressive with equity allocations. One of those factors emphasizes whether we believe there is visibility into the probability and severity of a US recession. Continue reading

Market Update: Fri, Mar 27, 2020 | LPL Financial Research

DAILY INSIGHTS

Markets giving up some gains into the weekend. Following the historic run over the past three days, US equities are lower in early trading Friday. The United States now has more confirmed cases of COVID-19 than China, though far fewer deaths. The stimulus package is expected to pass through the House of Representatives today before heading to the White House for President Trump’s signature, though if any lawmaker objects to the special “voice vote,” a delay remains a possibility. Continue reading