Financial Insights

Someone’s Having a Birthday!

The Bull is 9…Can it make 10? LPL Research writes, “The bull market will celebrate its ninth birthday on March 9, 2018. During that nine-year period, the S&P 500 Index nearly increased fourfold in value including dividends, producing a total return of 385% (19.2% annualized) while rising almost 300% in price. The recent market volatility, driven by fears of tariffs, inflation, and monetary policy, has many wondering if this is the end of the road for the bull market. So how much might the current bull have left in the tank? Given that we are not seeing the warning signs that have historically signaled the ends of past bull markets, including excessive equity flows and activity in initial public offerings and mergers and acquisitions, we would not be surprised if the current bull market celebrates its record tenth birthday next year. This week, we look at some of our favorite bull market indicators and the signals that accompany them.”   Read More  »

Austin Frye Interviewed by MarketWatch About Financial Concerns by Income Level

February 25, 2018 | posted in: Blog, Financial Insights, In The News | by

Here’s what Americans earning less than $40,000 and over $100,000 worry about (and the middle class is split right down the middle).
Ali Malito, writing for Marketwatch, asked Austin for his thoughts on the differences on what different income groups worried about, financially. “Retirement. Saving. College. Will. Low-income families are too worried about day-to-day expenses and surviving to think about the long term, financial advisers say, and income inequality keeps these two types of households widely separated. “They need to take care of safety and shelter first,” said Austin Frye, founder and chief executive officer of Frye Financial Center in Aventura, Fla.   Read More  »

Strong Fundamentals & Positive Technical Evidence Suggest We May Be Out of the Woods

February 21, 2018 | posted in: Blog, Financial Insights, LPL Weekly Market Commentary | by

In answer to the question “Are we out of the woods yet?”,  LPL Financial’s John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, answer:  “After the fastest correction from a record high in the history of the S&P 500 Index, stocks staged an impressive comeback last week. The S&P 500 put together its best week since 2013, rallying more than 5% off the lows to bring its session win streak to six. This week we consider what this means moving forward, including what higher interest rates and rising inflation might mean for stocks.” Other key takeaways include the facts that: Stocks have made a significant comeback, rallying nearly 6% off the recent lows. Solid fundamentals and technical indicators suggest that recent lows may hold. Historical relationships suggest stocks and yields can move higher together and stock valuations are justified based on current Read the full article from LPL Research here.

Where Might Stocks Go From Here & What To Do About It?

February 13, 2018 | posted in: Blog, Financial Insights, LPL Weekly Market Commentary | by

After an extraordinary two-year period of market calm, the major U.S. equity markets slipped into correction territory last week.
John Lynch, LPL Financial’s Chief Investment Strategist, shares his thoughts on the topic: “A perfect storm of investor worries collided over the past six trading days, including inflation, monetary policy, and the unwinding of crowded, complex trades. The result was an unprecedented bout of market volatility, highlighted by 1,000-point swings in the Dow Jones Industrial Average and the fastest retreat ever (nine days) from a record level in the S&P 500 Index to a correction.” Key takeaways include: A perfect storm of investor worries collided over the past six trading days, resulting in an unprecedented bout of market volatility. These experiences provide a good opportunity for investors to reassess current allocations relative to long-term targets. We [LPL] maintain our year-end S&P 500 fair value estimate of 2850–2900, representing a move of approximately 10% from current levels. Read the complete article here.

Austin Frye Interviewed by Consumer Reports About Preventing Elder Financial Abuse

February 9, 2018 | posted in: Blog, Financial Insights, In The News | by

Regulators are stepping up efforts to protect seniors, but you still need to build your own safety net.
  According to Penelope Wang of Consumer Reports, “By one estimate, older Americans lose up to $30 billion a year to elder financial abuse—the misappropriation of their money by con artists or thieves who are total strangers to them or even trusted friends or family members.  These crimes often go unreported because victims are ashamed to speak up or are unable to do so.  But that may soon start to change. The government and the financial services industry are finally taking steps to encourage people who are in a position to spot elder financial abuse—including brokers, bankers, and financial advisers—to act on and report what they see.”   Austin shared his thoughts about how to prevent elder financial abuse:   Read More  »

Don’t Let Recent Bumpiness Throw You…

…the Fundamentals are Looking Good for the Year Ahead.
According to LPL Research, “After 18 months of extraordinary calm, volatility returned these past several days, as trading volumes surged and equity markets plunged. The primary culprit was higher than expected wage growth in the January jobs report, which may have increased fears that the Federal Reserve (Fed) would be more aggressive with interest rate hikes in 2018. However, the selling pressure unmasked a variety of issues, including investor complacency and the difficulty of unwinding crowded and complex trades involving leverage, or borrowed money. Though never any fun to endure, pullbacks are a normal course for long-term investing. It is important to note that that this market weakness is occurring against the backdrop of solid growth in the U.S. economy and corporate profits. Fiscal policy changes may help support growth in personal consumption and business investment. Moreover, this growth is not simply a domestic phenomenon, as global economies are exhibiting similar patterns boosting both demand and earnings.   Read More  »