Index Performance The onset of the global pandemic shocked the economy and triggered one of the deepest recessions ever in 2020. As investors fled to “safe haven” Treasuries and the Federal Reserve (Fed) lowered interest rates, the yield on the 10-year Treasury traded as low as 0.31% intraday on March 9, 2020 (its lowest closing…
Index Performance US and International Equities The major market indexes finished the week lower. In addition, many international markets followed in lockstep with their US counterparts. Emerging markets (MSCI EM Index) outperformed developed international markets (MSCI EAFE Index). For the second week in a row, energy was a standout performer among its sector peers, while…
Treasury yields hit two key levels the first week of 2021. As shown in the LPL Chart of the Day, the 10-year Treasury yield moved above 1% for the first time since March 2020, and the 10-year breakeven inflation rate, a measure of Treasury market-implied inflation expectations, climbed above 2% for the first time since…
Index Performance US and International Equities This week, we gained clarity on the makeup of Congress with the Georgia US Senate runoff. Democrats will now have control of both chambers of Congress, though with only a razor-thin majority. “There have been some concerns about stocks given a blue wave,” explained LPL Research Chief Market Strategist…
US investment-grade bonds had a solid 2020 despite a tumultuous year overall. The broad Bloomberg Barclays US Aggregate Bond Index had a total return of 7.5%—not as strong as 2019’s 8.7% but its fifth-best year in the last 20 and the best two-year stretch since 2001–02. “It was another good year for bonds in 2020,…
US and International Equities As we finish out a challenging year this week, Congress passed COVID-19 relief, providing increased unemployment benefits, small business assistance, along with an additional $600 stimulus payment. In addition, Congress is presently in negotiations concerning additional stimulus payments. The major market indexes closed higher this week. Compared to last week where…
For many economic data series, 2020 has been a roller coaster. Not for housing, however. The onset of the COVID-19 pandemic and social distancing measures jump-started the “nesting” behavioral shift away from urban apartments and into single-family housing in the suburbs, as households sought additional space. As shown in the LPL Chart of the Day,…
Solid holiday shopping season. Holiday sales grew 3%, beating forecasts for a 2.4% increase according to MasterCard’s SpendingPulse. Online sales rose 49% year over year. These results were impressive for a recessionary period—the comparable figure dropped 3.5% in 2008—and highlight the resiliency of the US consumer and benefits of stimulus. Daily Insights Stocks open higher…
With concern about inflation rising for some investors, we’ve started to receive questions about Treasury Inflation-Protected Securities, or TIPS. With TIPS, the principal of the bond, the part that’s paid back when the bond matures, is adjusted for inflation (or deflation) as measured by the Consumer Price Index (CPI), which is a form of inflation…
US and International Equities The major market indexes reversed course from last week to finish this week higher. The tech-laded Nasdaq composite was the bright spot, returning 3% this week. So far, the Nasdaq composite is up over 43.4% for the year and is on track to post its best annual return since 2009 (43.9%).…