The S&P 500 appears likely to produce double-digit year-over-year earnings growth for the first quarter, powered by energy’s rebound. Last year’s first quarter marked the trough of the earnings recession as S&P 500 earnings fell 5%, setting up an easy comparison. We have several reasons to be optimistic, including good macro data and resilient estimates. Read more about those reasons from LPL Financial’s Burt White, Chief Investment Officer, and Jeffrey Buchbinder, CFA Market Strategist.
April already? Time flies when you’re having fun! Fixed income is off to a good start in 2017, with almost all sectors in positive territory for the year at the end of the first quarter. It was in many ways a reversal of the fourth quarter of 2016, with some election-driven trades unwinding, as longer-duration fixed income benefitted from markets that may have overshot their landing in the fourth quarter of 2016. Read more from LPL Financial’s Matthew E. Peterson Chief Wealth Strategist and Colin Allen, CFA Assistant Vice President.
“The NCAA College Basketball Final Four is set. Gonzaga, North Carolina, Oregon, and South Carolina are headed to Phoenix, Arizona to determine this year’s college basketball national champion. In that spirit, following our “Sweet 16” commentary last week, this week we share our “for the stock market in 2017: 1) economic growth, 2) earnings, 3) corporate tax reform, and 4) the Federal Reserve (Fed). We expect a hard-fought battle between these factors and market risks, including a policy mistake from a government or central bank, trade protectionism, and geopolitics.” Read on for more insight from LPL Research.
The bull market celebrated its eighth birthday last week on Thursday, March 9, 2017. During that eight-year period, the S&P 500 Index tripled in value including dividends. Although valuations are rich and policy risks are high,. We would not be surprised if the bull celebrates its ninth birthday one year from now. Read LPL Research’s take by Burt White, Chief Investment Officer and Jeffrey Buchbinder, CFA Market Strategist, of LPL Financial.
Who doesn’t love Paris in the springtime? The fundamental case for European equities continues to strengthen, with both earnings and valuations improving. The technical perspective on Europe is mixed, with the region doing well on an absolute basis, but still unable to outperform U.S. stocks on a consistent basis. Political concerns, which often get expressed through currency markets, are likely to determine whether European equities begin to outperform their domestic peers. There a lot to like about the coming European spring from both a fundamental and valuation perspective. The rebound in corporate earnings growth is particularly important. But market performance relative to U.S. stocks is still relatively weak, and major political events are still ahead. We are getting our spring wardrobe ready, but still not going to put away our winter coats. Read on for the complete analysis from Burt White Chief Investment Officer, LPL Financial Matthew E. Peterson Chief Wealth Strategist, LPL Financial.
The numbers are in! Fourth quarter earnings growth, while not a blowout, continued to be solid, putting the earnings recession further in the rear view mirror. Read on for 5 key observations and complete details from Burt White Chief Investment Officer, LPL Financial and Jeffrey Buchbinder, CFA Market Strategist, LPL Financial,.