LPL Weekly Market Commentary

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  »

Myth Busting: LPL Research Takes On 4 Market Myths

There are several market myths related to certain market indicators which have the tendency to distract investors from what really matters in assessing market opportunities.
LPL believes the overall fundamental backdrop is currently quite positive thanks to solid economic growth and strong corporate earnings trends, while market sentiment and technicals continue to suggest future equity strength. This week they will bust some common market myths.   Read More  »

Has the Stock Market Bottomed Out?

The February 2018 market correction caught many investors off guard, but the longer-term trend remains higher.
So says LPL Research.  “This year has provided more volatility than we’ve seen in recent years, with many wondering if the movement is a sign that the bull market is ending. Remember that when the market is finding its lowest point (the bottom), the process to get there can be quite frustrating and even confusing for investors. As a result, we acknowledge we are amidst the bottoming process, and we don’t think the bull market is ending, as longer-term technicals continue to look strong, along with sentiment flashing levels of worry seen at other previous major market lows.”   Read More  »

First Quarter Earnings Preview: What to Watch

According to LPL Research, there is reason to believe there is another strong earnings season on tap.
“First quarter earnings season, which kicks off April 12–13, sets up to show solid growth, buoyed by tax reform.” Key takeaways include: The new tax law, solid economic growth globally, robust manufacturing activity, and a weak U.S. dollar set up another potentially strong earnings season. Key areas to watch this quarter include companies’ uses of tax law proceeds, reaction to trade tensions, and possible wage pressures. Though difficult to predict, results may help stocks stabilize by shifting investor attention away from trade headlines and toward strong company fundamentals. Read more from John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial here.