Market and Economic News from LPL Financial Research Team
Week of March 19, 2018
MARKET COMMENTARY; This weekly update offers insights into domestic and global financial markets events, policy actions, and geopolitical impacts.
- In the spirit of March Madness, we have compiled our “Sweet 16” for the markets.
- We identified 16 keys for stocks for the rest of 2018 and assessed their potential market implications.
- We expect stocks to add to year-to-date gains driven by better economic growth and strong earnings, despite trade tensions.
ECONOMIC COMMENTARY; This weekly update offers insights into the U.S. and global economy.
- Jay Powell will preside as chair over his first Fed policy meeting this week.
- The Fed’s overall assessment of the economy is expected to improve.
- Markets anticipate a continued steady but gradual path higher for rates, though they could respond to a meaningful signal of a more aggressive approach.
BOND MARKET PERSPECTIVES; This weekly update offers insights into major news and themes driving fixed income markets.
- Short-term high-quality bond yields have continued to increase since the lows seen in July 2016, and have moved sharply higher since September 2017.
- We still prefer intermediate bonds for overall fixed income allocations, but with interest rates on the rise, short-term bonds may present a better risk-reward opportunity for defensive portfolio positioning.
- Scenario analysis shows that if rates rise, short-term bonds may outperform intermediate and long maturities.