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Market and Economic News from LPL Financial Research Team

Week of January 8, 2018

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

“Will a Strong 2017 Carry Over into 2018?”

KEY TAKEAWAYS

  • 2017 was a remarkable record-breaking year for stocks.
  • 2018 is off to a very strong start, with stocks up all four trading days and the S&P 500 already 2.6% higher year to date.
  • Given clarity on the new tax law, we summarize our equity views for 2018.

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

"2017 Was Good for the Economy; 2018 Could Be Even Better"

KEY TAKEAWAYS

  • This week, we provide an overview of a solid 2017 for the economy.
  • Although manufacturing could be near a peak, history suggests that this isn’t a major near-term recession warning.
  • With the new tax law signed, we have upgraded our economic views for 2018.

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

"Fixed Income in 2018: Still Under Pressure"

KEY TAKEAWAYS

  • High-quality fixed income may remain under pressure in 2018.
  • The yield curve flattened considerably in 2017, which could continue in 2018, but may not be the ominous indicator it has been in previous cycles.
  • Though our return forecast for broad high-quality fixed income is muted, it remains an important component of diversified, balanced portfolios.