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Strong Week Ahead of a Big WeekendSubmitted by Frye Financial Center on December 3rd, 2018
According to LPL Research, “It was a great week for the stock market. The S&P 500 Index rallied 4.9% last week, leaving the index less than 6% from its record high, on September 20, 2018 (excluding today’s gains). Gains were driven by increasing optimism (now proven to be warranted) for progress on U.S.-China trade talks at the G20 summit over the weekend and a more dovish outlook from Federal Reserve Chair Jay Powel. This week we share our thoughts on these major market-moving events and reiterate our positive stock market outlook.”
Key takeaways include:
- Last week’s stock market rally was driven by optimism (now clearly warranted) surrounding U.S.-China trade talks and a more dovish Fed.
- The events added to the positive fundamental case for stocks here, while stock valuations are quite reasonable.
- The technical picture is muddled, but big gains to start this week—should they hold—would help increase the odds of further gains from a technical analysis perspective.
- To read more from John Lynch Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial, click here.