LPL Research Weekly Market Commentary 1/13/17

Stocks are up as earning season kicks off.
Was Friday the 13th lucky for the banks? Chinese trade disappoints. Fear Triskaidekaphobia? The tight range continues.   Read More  »

LPL Research Weekly Market Commentary 1/9/17

FOURTH QUARTER 2016 EARNINGS PREVIEW: LOOKS LIKE ANOTHER GOOD ONE!   The fourth quarter 2016 earnings season begins this week, and we expect it to be another good one. Energy prices rebounded in the fourth quarter, positioning the energy sector to potentially deliver its first earnings growth since the third quarter of 2014. Financials is poised to be a sector standout, with rising interest rates, stock market gains, and healthy credit markets all helping to buoy the sector’s profit picture. Read the full article at LPL Research Weekly Market Commentary 1/9/17

Curious about 2017? Read on!

January 5, 2017 | posted in: Blog, Financial Insights | by

Learn all you need to know from LPL Financial Research   Read More  »

How people get as much as 88% more from Social Security!

December 30, 2016 | posted in: Blog, Financial Insights | by

Many people may be unaware of the impact various decisions can have on their ultimate social security benefit amount. Timing of election, work income, taxes, spousal benefits, etc., must all be considered in effective social security benefit planning. Regarding the timing of elections, for example, according to a recent study covered by CNBC, someone who retires and begins claiming Social Security at age 70 would receive a benefit that’s 76 percent higher than the one he or she would receive at age 62. The CNBC piece points out that if you factor in late-career earnings replacing a zero-income year, the increase can become as much as 88 percent for women and 82 percent for men. For the full CNBC piece click how to get 88% more from social security.

The Rate Hike Is A Good Sign

December 22, 2016 | posted in: Blog, Financial Insights | by

Last week’s rate hike had been well telegraphed, with the federal funds futures market pricing reflecting a nearly 100% chance of a hike for some time. Though the potential for some bond market volatility in the short term exists, we don’t expect another broad-based bond sell-off (or a corresponding quick rise in rates) given that markets have had plenty of time to digest the possibility of a rate hike. Regarding equities, rising interest rates tend to be accompanied by expectations for economic growth and stocks have done well, historically, during periods of rising but low interest rates. We are encouraged by LPL Research’s recent review of 23 periods of rising rates, during which the S&P 500 rose 83% of the time. Yet, rate hikes also reaffirm that we are in the mid-to-late stage of the economic cycle. In this part of the cycle, we can expect additional equity market volatility. Managing Portfolios For Rising Interest Rates Overall, the rate increase reaffirms that we are returning to a more typical economic environment, which is a welcome change from the environment we have lived in since the Great Recession. And although we have seen a change in Fed policy, what shouldn’t change is our commitment to working toward our long-term investment goals, while monitoring short-term trends. The following are among short-term tactics that can be pursued to help mitigate against the risk of rising interest rates: Reducing fixed income holdings’ durations Reducing bond holdings, while being careful to avoid under-investing in this key allocation Reevaluating the mix/types of bonds being used For equities: the opportunities that growth sectors present in this business cycle stage should be considered.   IMPORTANT DISCLOSURES The economic forecasts set forth in the presentation may not develop as predicted. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security. The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. The eleven-person FOMC is composed of the seven-member board of governors, and the five Federal Reserve Bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other regional Federal Reserve Banks rotate their service in one-year terms. This research material has been prepared by LPL Financial LLC. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance reference is historical and is no guarantee of future results. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal, and potential liquidity of the investment in a falling market. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk. Because of its narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price. High-yield/junk bonds are not investment-grade securities, involve substantial risks, and generally should be part of the diversified portfolio of sophisticated investors. Bank loans are loans issued by below investment-grade companies for short-term funding purposes with higher yield than short-term debt and involve risk.

Time for a replay!

December 9, 2016 | posted in: Blog, Financial Insights | by

Austin Frye’s take on football & investing in gets picked up by Investopedia.com! It’s football season, people, and that translates to millions of eyeballs fixated on the gridiron. “After watching football over so many years, I have actually found there are many important commonalities between achieving success on the field and working towards achieving success with financial goals. Here are eight key investment and financial lessons I’ve learned from watching football that you can use to work towards financial independence: 8 strategies for success that football shares with Investing!