Rising geopolitical risks have begun to temper optimism on Wall Street, but researchers at LPL Financial believe that U.S. stocks will maintain strong momentum throughout the end of 2019.
The report comes as unwelcome escalations in U.S.-China tensions have triggered a considerable pullback in the U.S. stock market.
LPL Financial says stock market will shrug off October slump
Writing in a newly published report, LPL Financial researchers noted that slowing global economic growth and uncertainties regarding monetary policy are unlikely to drag stocks into an extended correction, even if they create a “wall of worry” that catalyzes short-term volatility.
“Geopolitical matter have complicated the tug-of-war between fiscal and monetary policies and contributed to investor concerns about increased policy uncertainty. Policy uncertainty will likely persist, but we think financial markets will climb this wall of worry,” wrote John Lynch, the firm’s chief investment strategist.
Why researchers say stocks will thrive after the storm