Midyear Outlook 2018: The Plot ThickensSubmitted by Loran Graham Co. on August 5th, 2018
When we as investors began 2018, we were tuned in to the recent fiscal policy changes that were expected to propel economic activity and the financial markets higher in the coming year. The handoff in leadership from monetary policy to fiscal policy was well underway as a driver of consumer spending, business investment, and corporate profits. Instead of depending on the Federal Reserve (Fed) to move this expansion forward, fiscal incentives are now critical for continued growth, with the new tax law taking the lead.
Although we expect continued growth, there is also the potential for greater market sensitivity due to the late cycle concerns that can emerge when the economy is doing well. So indeed, the plot has thickened. But that doesn’t mean we’ve taken a turn for the worse. The underlying forces are still forging ahead and this expansion and bull market have not been defeated. Right now, there are many positive fundamentals, like business investment and corporate profits, supporting economic growth and potential market gains.
Armed with the investment insights of LPL Research’s Midyear Outlook 2018, and supported by the guidance of a trusted financial advisor, we expect investors can remain optimistic about what’s ahead for their investment portfolios. Read more about our forecasts and key themes to watch in the full publication. This guidance and investment insight can benefit investors in their search for long-term success.For additional insight, view the complete LPL Research Midyear Outlook: The Plot Thickens.
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. The economic forecasts set forth in the presentation may not develop as predicted. Past performance is no guarantee of future results. This research material has been prepared by LPL Financial LLC.