Financial Insights

Looking at A Good 3Q17, And A 2017 For the Record Books (So Far)

LPL Research recaps the 3Q17 earnings season, and what it means looking ahead, as well as takes a look back at the year so far, highlighting some remarkable statistics. “Another good earnings week. With over 80% of S&P 500 company results now in the books, third quarter S&P 500 earnings are tracking to an 8% year-over-year increase, 1.2% above the prior week.” Read more here. “What can we say about 2017 that hasn’t been said already, as it continues to smash records? Per Ryan Detrick, Senior Market Strategist, “2017 will likely be remembered for two things: a persistent bullish trend and historically low volatility.”” See two more records that prove that point here.

November’s a big month…find out why!

As LPL Research tells us, “Along with the holiday anticipation November can bring, [November] is also historically a bullish time for equities. The S&P 500 Index is on pace to log another gain in October, marking 7 consecutive monthly gains on a price basis and 12 in a row on a total return basis (including dividends).”  So what lies ahead? Key takeaways include: November kicks off a historically strong period of the year for financial markets. Interest rate decisions from the Fed, Bank of Japan, and Bank of England are on tap soon. Next steps on tax reform will be very important this month. Get all the details here from LPL Financial’s John Lynch, Chief Investment Strategist, and Ryan Detrick, CMT Senior Market Strategist.

Remembering the Anniversary of the ’87 Crash…And Why We’re Better Off Now

October 18, 2017 | posted in: Blog, Financial Insights | by

In this week’s Weekly Market Commentary, LPL Research examines the important differences between the terrible crash 30 years ago this week, and where we are now.  While some claim it’s a cycle that’s destined to repeat, facts don’t seem to bear that out. Key takeaways include: Though charts comparing 1987 to 2017 look similar, gains leading up to 1987 were much stronger. We believe that the stock market is standing on a much stronger fundamental foundation today, making another crash appear unlikely. As we reflect on this anniversary, let’s appreciate this bull market but not get complacent. Market events don’t repeat themselves, but they sometimes rhyme. The most important takeaway? “We believe that the stock market stands on a much stronger fundamental and technical foundation today than it did in October 1987, with less euphoric sentiment, making another crash like 1987 appear unlikely. Improvements in regulations and market structure can be debated, but investors clearly have better access to information and can trade much more easily.” Read the full analysis from LPL’s John Lynch, Chief Investment Strategist, andJeffrey Buchbinder, CFA Equity Strategist, here.

3Q2017 Earnings Preview: Slower, but Still Solid!

This week is the beginning of the 3rd Quarter earnings season, and LPL Research gives us an overview of what to expect.  “Third quarter earnings season gets underway this week (October 9–13) and it should be another good one. The S&P 500 Index has exceeded earnings expectations 33 straight quarters and we see no reason why the third quarter won’t make it 34.” Key takeaways from LPL Financial include: We expect another solid quarter of earnings growth, but a third straight double-digit increase for S&P 500 profits appears unlikely. Hurricane impacts, tougher comparisons, and a lack of contribution beyond technology and energy present earnings growth headwinds. Hurricane impacts aside, we have several reasons to be optimistic, including solid manufacturing data, recent U.S. dollar weakness, and resilient estimates. Read more from LPL Financial’s John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist.

October…Traditionally a Volatile Month?

  According to LPL Research, “October 2017 ushers in shorter days and cooler weather, but the global bull market shows few signs of slowing down.” Key takeaways from the most recent Weekly Market Commentary include: October is historically the most volatile month for equities. An election in Japan and interest rate decisions from the BOJ and ECB are on tap this month, only adding to potential movement. Initial third quarter GDP will be released, while third quarter earnings season begins. Read more from LPL Financial’s Ryan Detrick, CMT Senior Market Strategist, and John Lynch, Chief Investment Strategist.

Sun Signs – Looking Good!

August 21, 2017 | posted in: Blog, Financial Insights | by

As Burt White, Chief Investment Officer, Managing Director of Research, LPL Financial says, “Markets seem to welcome when a solar eclipse comes around.”  Check out why here!