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Market and Economic News from LPL Financial Research Team

Week of September 18, 2017

MARKET COMMENTARY; This weekly update offers insights into domestic and global financial markets events, policy actions, and geopolitical impacts.

"Update on Growth and Value Stocks"

KEY TAKEAWAYS

  • Growth stock valuations appear rich; its run may be poised to pause or reverse.
  • Economic growth is improving, which tends to favor value.
  • Technical analysis suggests that the growth rally may be overextended.

ECONOMIC COMMENTARY; This weekly update offers insights into the U.S. and global economy.

"Why Isn't Inflation Higher?"

KEY TAKEAWAYS

  • This week’s FOMC meeting will offer meeting minutes, updated economic projections, and a press conference.
  • Markets will be closely watching for updates on how below-target inflation may impact the
    path of rate hikes.
  • While inflation has been trending lower in recent months, the latest CPI report shows some upward momentum.

BOND MARKET PERSPECTIVES; This weekly update offers insights into major news and themes driving fixed income markets.

"Balance Sheet Ballyhoo"

KEY TAKEAWAYS

  • The Fed is expected to offer details about when it will begin reducing its balance sheet this week.
  • We expect the short-term market impact to be minimal, but that could change as the reduction accelerates in coming years.
  • Other global central banks are still providing liquidity to markets, helping ease the
    impact of monetary policy normalization.