Barry Gilbert, PhD, CFA, Asset Allocation Strategist, LPL Financial Ryan Detrick, CMT, Chief Market Strategist, LPL Financial
Fiscal stimulus, which was central to the market rebound in the last year, may start moving to the sidelines over the rest of 2021 and into 2022 as the recovery continues. Economic growth can compensate for the loss of government checks to households and businesses, but potential tax increases may be more challenging for markets to navigate. Business tax increases, in particular, may gradually pull gains out of markets about equal to their size, but with economic growth
supporting corporate earnings, we believe a positive backdrop for equities remains in place.