In April, we increased our forecast for U.S. gross domestic product (GDP) growth in 2021 to 6.25%—6.75%, up from 5%—5.5%, due to prospects for a full reopening of the U.S. economy, massive stimulus, and Federal Reserve (Fed) support. We have also raised our S&P 500 Index earnings per share (EPS) forecast for 2021, to a…
Economic Blog Before the pandemic we had begun to warm up to international stocks. Valuations relative to the U.S. markets had become increasingly attractive after a long stretch of outperformance by U.S. stocks compared with those in Europe and Japan. We had also anticipated that a weaker U.S. dollar would enhance international stock returns for…
Raising Economic And Market Forecasts…Again On the LPL Market Signals podcast, Equity Strategist Jeff Buchbinder and Asset Allocation Strategist Barry Gilbert update forecasts based on how the economy’s recovery from the pandemic, aided by vaccine distribution, massive stimulus, and the desire to return to normal, continues to surpass expectations. Daily Insights U.S. stocks open little…
Inflation is coming and, according to certain market-based inflation metrics, markets are expecting sustained inflation rates not seen since the late 2000s, although likely still at manageable levels. Inflation, which captures price increases in consumer goods and services, is a primary risk for fixed-income investors. For fixed-income investors, who receive fixed coupon and principal payments,…
It has been just over a year since the S&P 500 Index bottomed on March 23, 2020, and while global stock markets have provided historic returns since the low, the biggest winners come from a completely different asset class: commodities. As global activity quickly ground to a halt, commodity prices plummeted, with oil prices even…
On the LPL Market Signals podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder consider what could be in store for stocks in year two of the bull market, along with a discussion of rates and the latest Federal Reserve meeting. Stocks open lower as oil prices pull back from their highs West…
Index Performance U.S. and International Equities All major United States markets declined this week. U.S. small caps (Russell 2000 Index) were last week’s best performing index. This week, they reversed course and were the worst performing index. The broad-based international markets gained marginal ground this week. Sluggish Sectors Communication services was the top performing sector…
US and International Equities All major United States and international markets were positive this week. US small caps, as denoted by the Russell 2000 Index, had the best performance, returning over 7% this week. Small caps continue to be this year’s standout sector, returning over 19% year-to-date. All Sectors Green This Week In a rare…
Tuesday, March 9, 2021 Today is the one-year anniversary of the low in the 10-year Treasury yield. While we’ve discussed the sharp rise in U.S. Treasury yields that have occurred this year, rising rates have been a global phenomenon. Similar to the United States’ story of increasing growth and inflation expectations, non-U.S. interest rates have…
US and International Equities Markets were mixed this week. The Nasdaq Composite index was the worst performer, pulling back over 2% this week. For the second week in a row, the Dow Jones Industrial Average held up best, and was up over 1%. In addition, both the developed and emerging market equity markets gained ground…
