LPL Financial Research Publishes Investment Midyear Outlook 2018
July 11 2018 - 9:00AM
Leading retail investment advisory firm and independent
broker/dealer
LPL Financial LLC, a wholly owned
subsidiary of LPL Financial Holdings Inc. (NASDAQ:LPLA), today
announced its research publication, “Midyear Outlook 2018: The Plot
Thickens,” is available for download. The report contains
investment insights and market guidance covering the rest of the
year.
LPL Research believes the following three themes will be key to
the markets over the balance of 2018:
- Fiscal policy remains key to growth. Tax cuts,
a more business-friendly regulatory environment and increased
government spending could likely support consumer spending,
business investment and corporate profits—key drivers of LPL
Research’s economic and stock forecasts.
- Looking at market peaks in context. LPL
Research believes we are starting to see peaks in several economic
and market indicators, but given our current environment, that
doesn’t mean a recession is necessarily around the corner.
- Creating opportunity amid rising volatility.
LPL Research expects greater market volatility may be ahead, but
reminds investors that experiencing these ups and downs is a normal
part of our market environment. Instead of fearing it, there is the
potential to create opportunities by embracing it and strategizing
accordingly.
The midyear report maintains confidence in the existing
forecasts reported in “Outlook 2018,” with some minor
adjustments:
- Economy: GDP growth up to 3%. Early this year,
LPL Research slightly upgraded the gross domestic product (GDP)
forecast, as tax cuts could likely improve personal and business
spending. LPL Research expects the combination of tax cuts, a new
government spending package and financial deregulation to support
continued growth.
- Stocks: 10%+ total returns. Strong earnings
are still expected to remain the key driver of stock market gains,
thanks to the benefits of the new tax law. Although volatility is
expected to increase, in the context of steady economic growth and
strong corporate profits, LPL Research sees the potential for
further stock gains in the second half of 2018.
- Bonds: Flat to low-single-digits. Accelerating
global growth and rising interest rates continue to pressure bonds.
The midyear report maintains the forecast of flat to
low-single-digit returns for the Bloomberg Barclays U.S. Aggregate
Bond Index, but notes that high-quality bonds may provide
diversification benefits for investors’ portfolios.
“Given that we are in the later stages of this economic cycle,
with factors such as increased trade tensions and geopolitical
uncertainty at play, we do expect greater volatility may be ahead.
But it’s important to remember that experiencing these ups and
downs is a normal aspect of our market environment,” said LPL
Financial Executive Vice President and Chief Investment Strategist
John Lynch. “Overall, we continue to see the potential for economic
and market growth in 2018 and beyond. The LPL Research ‘Midyear
Outlook 2018’ is here to provide the insightful commentary to help
navigate the remainder of the year.”
About LPL FinancialLPL Financial is a leader in
the retail financial advice market and the nation’s largest
independent broker-dealer*. We serve independent financial advisors
and financial institutions, providing them with the technology,
research, clearing and compliance services, and practice management
programs they need to create and grow thriving practices. LPL
enables them to provide objective guidance to millions of American
families seeking wealth management, retirement planning, financial
planning and asset management solutions. LPL.com
Securities and Advisory Services offered through LPL Financial.
A registered investment advisor, Member FINRA/SIPC.
*Based on total revenues, Financial Planning magazine June
1996-2018
Important Disclosures
Please see the Midyear Outlook 2018: The Plot Thickens for
additional description and disclosure.
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.
Any economic forecasts set forth in the presentation may not
develop as predicted and there can be no guarantee that strategies
promoted will be successful.
All performance referenced is historical and is no guarantee of
future results.
All investing involves risk including loss of principal.
No strategy assures success or protects against loss.
There is no guarantee that a diversified portfolio will enhance
overall returns or outperform a non-diversified portfolio.
Diversification does not protect against market risk.
All information is believed to be from reliable sources; however
we make no representation as to its completeness or accuracy.
Media Contacts: LPL Research:
Christine Cannon 631-776-0247 ccannon@markettalknow.com
Lauren Hoyt-Williams 980-321-1232
Lauren.Hoyt-Williams@lpl.com
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