facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog external search brokercheck brokercheck
%POST_TITLE% Thumbnail

Why The Recent Strength Has Bulls Smiling


The huge equity rally continued last week, with the S&P 500 Index up another 3%, on the heels of adding more than 15% in the previous week. The gain during the past two weeks of 15.5% was the greatest since October 1974. Taking it a step further, the 15 trading days ending April 14 saw the S&P 500 up more than 27%, one of the greatest rallies ever. What we’ve been seeing is truly historic, so the big question now is: What could happen next?

“This remarkable rally has caught most off guard, but what might surprise many to hear is more gains could eventually be in store in 2020,” explained LPL Financial Senior Market Strategist Ryan Detrick. “When we’ve seen similar blasts of extreme short-term strength, stocks have been quite strong going out 6- to 12-months.”

As shown in the LPL Chart of the Day, the S&P 500 was up nine of 10 times six months later and higher every single time a year later after the previous best 15-day gains ever. Be aware though, some of the returns in the near-term were weak, suggesting a pullback after such a strong move is likely. Still, this much strength in such a short timeframe could very well suggest the rest of 2020 could have bulls smiling.

 

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any 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 information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was 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 that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

If your representative is located at a bank or credit union,  please note that the bank/credit union is not registered as a broker-dealer or investment advisor.  Registered representatives of LPL may also be employees of the bank/credit union.

These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, the bank/credit union.  Securities and insurance offered through LPL or its affiliates are:

  • 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 1-05000134