TOP 10 INVESTOR QUESTIONS
Many investors, ourselves included, find it difficult to understand why stocks have done so well lately in such a challenging economic environment and COVID-19 still an ongoing threat. We heard that question quite a bit at our annual national conference for LPL financial professionals held virtually in late August. That isn’t the only question we’ve been getting recently, so we’ve compiled our top-10 investor questions and answers.
QUESTION #1: CAN STOCKS KEEP GOING HIGHER, CONSIDERING THE RISKS?
With the S&P 500 Index up more than 50% since the March lows and stocks pricing in an optimistic recovery in the economy and corporate profits, we believe stocks may be due for a pullback—and the drop that occurred September 3–4 may be the start of it. The S&P 500 is near our bull-case scenario of a fair-value target of more than 3,450 that we highlighted in our Midyear Outlook 2020 publication—and our base-case target of 3,300 is under review. We also expect a pickup in volatility ahead of the November election