Earnings season is here
First quarter earnings season is here, and the LPL strategists show why this quarter is all about earnings guidance—and not what earnings have to say about quarter-one results. The COVID-19 slowdown didn’t begin until March, so first quarter results won’t accurately show what really happened.
Is this still a bear market rally?
The LPL strategists point out that the historic rally could mean this is more than just a bull market rally. In fact, the S&P 500’s recent 27.2% rally in three weeks could mean even more gains, as the previous ten best three-week periods ever saw stocks higher nine out of ten times six months later, and higher every single time a year later.
What will the recovery look like on the other side?
The economic data we are seeing is some of the worst of our lifetimes; however, the good news is a quick recovery could be possible if the virus can be contained. As the LPL strategists discuss, it will be quite tough for a “V-shaped” recovery, meaning the economy just picks up where it left off and soars higher.
