Early Thoughts on 2022 from LPL Research
With the fourth quarter underway—historically the best quarter for stocks, by the way—2022 is fast approaching. While a lot can still happen between now and the end of 2021, we don’t think it’s too early to start thinking about what stocks might do next year. We see a favorable economic environment for stocks in 2022, consistent with prior mid-cycle expansion years and bolstered by continued earnings growth. The gains may not come easy, however, with a number of risks such as COVID-19-related supply chain disruptions, inflation, and higher interest rates. "It’s not too early to start thinking about 2022. Prospects for above-average economic growth and further earnings gains next year point to potentially another good year for stock investors," says Jeff Buchbinder, CFA, Equity Strategist, LPL Financial. Read more.