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:
One of the most difficult questions we ask our clients is “Why is money important to you?” Most people react to the question with a look that says - What a ridiculous question (and you may have just had the same look). Take a moment to be truthful and answer the question. Here are some of the responses that we get: 1) Having money means I can pay the bills, 2) I can buy stuff I want, 3) I can leave money for my kids. How did you answer? Had you ever considered this question?
How much does the average American household have in the bank? Estimates vary, but the short answer to this question is “not enough.”
Last year, a GoBankingRates poll discovered that 57% of U.S. households had less than $1,000 in deposit accounts (although, 25% reported having at least $10,000). A 2017 analysis from Moebs Services, a research firm consulting banks and credit unions, noted that the average U.S. checking account contained around $3,600.1,2
Where are we in the current economic cycle? Why may fiscal support and better business fundamentals be key themes in 2018?
It is agreed that the earlier you start saving for retirement, the better. The big question on the minds of many savers, however, is: “How am I doing?” This article will show you some rough milestones to try and reach. (Keep in mind that you may need to save more or less than these amounts based on your objectives and lifestyle and income needs.)
I believe that each of us can learn from the attitudes and experiences of those that have come before us. This belief prompts me to glance through obituaries, looking for inspiration on how to live my life.
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.