200 Spring Street
At the midpoint of 2020, we’re mindful that it’s been an extremely challenging year so far in the United States and around the globe. We’re in the midst of a pandemic that continues to impact all of us, our communities and our economies.
Together we’re looking ahead for new ways to face these challenges and how we can prepare now for better times. We’ve been impressed by what we’ve seen so far: The resiliency and accelerated innovation among large and small US businesses; efforts by our national, state and local governments to support our communities; and most of all, the dedication and unprecedented cooperation among our front-line health professionals, medical researchers and everyday people to guide us through this health crisis.
LPL Research knows the stock market is forward-looking: It focuses on what’s happening today and what it sees on the road ahead. Much of the real-time economic data we follow — such as transportation activity, home sales and jobless claims — is showing tangible evidence that economic activity — while still depressed — has begun to make a comeback. Stocks already are pricing in a steady economic recovery beyond 2020 that may be supported if we receive breakthrough treatments to end the COVID-19 pandemic. However, the optimism reflected in stocks also may limit their upside potential over the rest of the year.
It’s still going to be a challenging environment with significant uncertainty that may lead to more volatility for the next few months. Still, we continue to encourage investors to focus on the fundamental drivers of investment returns and their long-term financial goals. LPL Midyear Outlook 2020 provides LPL's updated views of the pillars for investing — the economy, bonds and stocks.
As the headlines change daily, look to these pillars — or trail markers — and the Midyear Outlook 2020 to help provide perspective on facing these challenges now and preparing to move forward together. Also, read a special “Election 2020” section to find out how the economy has predicted the winning president every year going back to 1924.
Tom Turner, CFP®
October 8, 2019
Summer has turned to fall, and there’s already a little chill in the air. Three-quarters of the year is behind us now, and both stock and bond markets have had a strong year so far, although we expect to see regular—but normal— bouts of volatility as we progress through the fourth quarter. In its first week October has lived up to its reputation as a volatile month, but it’s important to keep in mind that October actually has been the third strongest month on average for the S&P 500 Index for the past 20 years...
July 23, 2018
Did you ever wonder how people become wealthy from their own earnings? Do they earn well? Usually yes, but not always. Do they invest well? Sometimes, but many don’t. One common denominator is that they spend far less than they earn. While many of the wealthiest families in the U.S. have much of their wealth tied up in the ownership of a business, they still often spend far less than they earn in net income.* It seems they understand this basic tenet of financial planning...