In many ways, what we’ve seen so far in 2020 has been both record-breaking and devastating. From the S&P 500 Index peak on February 19 to the bear market lows March 23, stocks lost 33.9%. Now, 50 trading days later, stocks have gained 39.6%, for the largest 50-day rally since the S&P 500 moved to … Read more
Despite the gradual reopening of the economy in several states, sentiment on Main Street remains suppressed, as the effects of COVID-19 appear to be keeping a lid on American optimism in the most recent Federal Reserve (Fed) Beige Book. In the Beige Book, the Fed presents qualitative observations made by community bankers and business owners—or … Read more
As stocks rallied 30% off the March 23 lows and earnings expectations were cut dramatically, valuations have become increasingly concerning for many investors (including some high-profile hedge fund managers being quoted in the financial press). As shown in the LPL Chart of the Day, the forward (next 12 months) price-to-earnings (PE) multiple for the S&P … Read more
The Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ) all met in the last week and while the show of power was minimal compared to recent weeks, they collectively reasserted their resolve to do whatever is necessary to support the global economy through the COVID-19 economic crisis. Rates are … Read more
With 20% of S&P 500 Index companies having reported first quarter results so far, earnings season has been a mixed bag. In our April 13 earnings preview, we noted that S&P 500 Index earnings for the quarter were expected to decline 10% year over year, based on FactSet’s consensus estimates from analysts. That number is minus 15% … Read more
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 … Read more
From the financial pressures of running a small practice to the repayment of hefty student loans, these three careers (and the people who pursue them) can have more in common than you may think. Those working in the medical, legal, and accounting fields can have complex financial needs, and a financial professional who doesn’t regularly deal with … Read more
The United States has more cases of the coronavirus than any other country, and in an attempt to stop the spread of this disease, states have closed schools and businesses throughout the country. These unprecedented shutdowns have pushed many people out of work, hurt businesses, and brought much of the economy to a screeching halt. … Read more
The Federal Reserve (Fed) surprised markets over the weekend by holding its March 17-scheduled meeting a few days early and introducing a wide range of provisions. Those provisions are intended to add liquidity, increase credit availability, lower the cost of borrowing, and eventually support the economy’s recovery from the impact of COVID-19. Usually, Fed actions … Read more
Markets remain volatile on coronavirus uncertainty. Despite a strong day for the S&P 500 Index yesterday on stimulus prospects and greater election clarity, we expect market volatility to continue. The overnight news cycle pulled S&P 500 futures meaningfully lower as containment efforts intensified. Until we have a clearer picture of the course of the virus, market volatility will likely persist and … Read more
An important part of managing your personal finances is keeping your financial records organized. Whether it’s a utility bill to show proof of residency or a Social Security card for wage reporting purposes, there may be times when you need to locate a financial record or document–and you’ll need to locate it relatively quickly. By … Read more
A late month selloff in January saw the S&P 500 Index close marginally lower for the month. But stocks have taken off in February, with the S&P 500 up nearly 4% this month, as US economic data remains strong and fears over the worst-case scenarios for the coronavirus appear overblown. Historically, February has been a … Read more
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