Do stocks still have room to grow?
An upturn in leading economic indicators suggests stocks may keep advancing.
The S&P 500 reached an all-time high in March after climbing more than 27% since late October. Many investors now worry that stocks are overvalued and the economy still may weaken, heightening the risk of big stock declines.
Those concerns are at odds with recent improvements in leading economic indicators. Historically, comparable improvements have preceded gains in the stock market, especially among cyclical sectors.
By Denise Chisholm, Director of Quantitative Market Strategy at Fidelity Investments.
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