Upgraded our view of mortgage-backed securities (MBS) from neutral to neutral/positive; Downgraded our view of bank loans to neutral from neutral/positive.
We still believe trade’s economic impact will be limited, but the indirect consequences should be monitored.
Getting past the midterm election removes uncertainty and enables investors to focus on fundamentals, which we believe can be positive for stocks.
We believe wage growth (and labor costs) will remain manageable amid the Fed’s gradual approach and changing labor market dynamics.
Within the four-year presidential cycle, this quarter and the following two quarters next year are historically the best for stocks.
The S&P 500 fell about 4% last week amid a myriad of concerns, among them possible peak earnings and a potentially overly aggressive Federal Reserve.
As financial markets fluctuate, we encourage investors to focus on solid U.S. economic fundamentals.
The U.S. economy likely grew at a moderate to strong pace in the third quarter.
With about one-fifth of third quarter earnings results in, the numbers have been solid thus far despite tariffs and increasing wage pressures.
Updates on LPL Research’s views on equity, equity sectors, fixed income, and alternative asset classes.