Street View The Fed and a Look Ahead
LPL Research Chief Investment Strategist John Lynch offers his perspectives on the current challenges facing the markets, though he remains optimistic about U.S. economic growth prospects in 2019.
LPL Research believes the following three themes will be key to the markets:
LPL Financial Chief Investment Strategist John Lynch shares thoughts on policy, market, and economic implications.
The LPL Research team proudly presents the Midyear Outlook 2018: The Plot Thickens, with investment insights and market guidance covering the rest of the year.
LPL Research believes the following three themes will be key to the markets over the balance of 2018:
Are you upset by what is happening on Wall Street? It may help to see this pullback within a big-picture context. Corrections have become so rare as of late that when one occurs, emotion threatens to influence investment decisions.
So far, February has been a rough month for equities. At the close on February 8, the Dow Jones Industrial Average was officially in correction territory after a slide occurred, which included two 1,000-point descents within four days. Additionally, nearly every U.S. equity index had lost 7% or more in the past five trading sessions.1,2
Where are we in the current economic cycle? Why may fiscal support and better business fundamentals be key themes in 2018?
Thus far in 2017, an important shift has taken place in this economic cycle. The Federal Reserve has shown increasing trust that the economy has recovered and that market forces can keep it steady. Fiscal policy may now provide the backstop to the economy that monetary policy has provided throughout the expansion. The gauges say growth engines and market drivers may have changed: power down monetary policy, power up business fundamentals, and potentially take fiscal policy and economic growth off standby.
First question...how many stocks are in the S&P 500 index? Did you get the hint, hidden in the question? Second question…through mid-April, how many stocks in the S&P 500 index accounted for over 50% of the index returns in 2017?
As an eternal optimist, I am trying to approach the current political environment with a positive outlook (noting that it will be over soon), hoping that some good ideas arise along with the noise pollution of the candidates self – promoting silly ideas.
In your hands is the LPL Research Midyear Outlook 2015, with the insights and guidelines you’ve been waiting for to put together portfolio strategies for the rest of 2015.