2018 Midyear Stock Market Outlook – 2nd Half Rally?

According to LPL Research, “The current environment looks favorable for strong earnings and stock gains. We do expect volatility, but steady economic growth provides a strong backdrop and the potential for opportunity.”
Key takeaways include: We forecast 10% returns or higher for the S&P 500 Index in 2018, but a pickup in volatility. We believe the S&P 500 is well positioned to generate strong earnings, thanks to a combination of steady economic growth and benefits of the new tax law. The profit story remains a global one, although earnings growth expectations are not as strong for developed international. Click here to read the full article by John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

LPL’s Midyear Outlook 2018 Is Here!

July 11, 2018 | posted in: Blog, Financial Insights | by

LPL Research asks, “In a world of rising volatility, will opportunities emerge?” “For the second half of 2018, continued economic growth and market gains may bring the heightened drama of increased volatility.  So while there may be some twists and turns ahead, at LPL Research we expect the positive fundamentals may prevail.” To read the full LPL Research Midyear Outlook 2018 report, click here.

Playing the CAPEX Theme

“Capital investment is accelerating, a trend we believe should continue.”
So opines LPL Research, suggesting that “One of the most encouraging aspects of the U.S. economy currently is that capital spending is accelerating just as some tailwinds are starting to kick in.”  Key takeaways include: Capital spending is picking up, which we believe should benefit the industrials and technology sectors. Industrial companies have not benefited from the strong manufacturing environment this year, putting the sector in position to potentially play catch-up. We expect technology to get its fair share of capital spending as companies seek to enhance productivity. Escalating trade tensions are a key risk to both sectors   Read More  »

What Are the Five Keys to the Emerging Market Outlook?

LPL Research says, “We continue to prefer emerging market (EM) equities in tactical asset allocations.
EM equities have given back strong early-year gains, pushing the MSCI EM Index into negative territory year to date on a total return basis. Many headwinds have weighed on EM stocks, including rising interest rates, U.S. dollar strength (and related weakness in EM currencies), and trade war fears. Here we highlight five keys to our EM outlook.”   Read More  »

Impressive Earnings Season Wraps Up

First quarter earnings season was excellent by almost any measure.
According to LPL Research, “The numbers were strong even without the boost from the new tax law. In this week’s commentary, we recap the outstanding near-complete first quarter earnings season, highlight some of the key themes, and show why a potential peak in earnings growth is not cause for immediate concern.”   Read More  »

Maybe This Year, Don’t Sell in May!

“Sell in May and go away” is probably the most widely cited stock market cliché in history.
According to LPL Financial, “every year a barrage of Wall Street commentaries, media stories, and investor questions flood in about the popular stock market adage. This week, we tackle this commonly cited seasonal pattern, while focusing on some reasons it may not apply this year.”   Read More  »