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Putting Things in Perspective

Putting Things in Perspective

April 17, 2020
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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.

View expanded chart.

“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.

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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.

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The modern design of the S&P 500 stock index was first launched in 1957.

Performance back to 1950 incorporates the performance of predecessor index, the S&P 90.

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