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.
- 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.
- 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.
- 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.