According to LPL, the S&P 500 Index was up more than 20% by the end of August for the first time since 1997

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Dear Friends,
According to LPL, the S&P 500 Index was up more than 20% by the end of August for the first time since 1997 and it has made a new high every single month this year so far (9 for 9). Incredibly, it made 53 new highs before August was over, the most ever. Any way you slice it, this year is historic for the bulls. The catch (and there’s always a catch) is the S&P 500 hasn’t pulled back 5% all year, with the last 5% pullback in October 2020. Not to mention September is the worst month for stocks since 1950.
But history says that great starts to a year tend to see continued strength in the final four months. “Looking at the previous Top 10 starts to a year ever, the final four months have gained eight times,” explained LPL Financial Chief Market Strategist Ryan Detrick. “So should we see any seasonal weakness, we’d use it as an opportunity to buy before likely continued strength.”
As shown below in the LPL Chart of the Day, 2021 ranks as the 6th best start to a year ever. The previous Top 10 best starts to a year averaged a return of 4.0% the rest of the year, with a very solid median return of 5.4%.
We continue to be cautiously bullish as long as interest rates stay low. We are also looking for pockets of opportunity, whether through European Stocks, high yield private debt, or small allocations to emerging markets. We are also looking to protect our gains, whether through hedging strategies or long/short funds. What could get in the way? Wage/input cost inflation and supply chain shifts are starting to weigh on margins. Interest rate risk is at a record high and valuations leave no margin for error. Well, there you have it.
Please reach out if you have any questions.
Debbie
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

1 2 3 193 194 195

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation