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Outlook 2019



The LPL Research Midyear Outlook 2019 Fundamental: How To Focus On What Really Matters In The Markets, is here to provide economic and market guidance as well as investment recommendations to help us navigate the second half of 2019.



LPL Research believes four primary pillars for fundamental investing will be key to the markets: 

  • Policy. We believe fiscal stimulus from the Tax Cuts and Jobs Act of 2017, along with decreased regulation and increased government spending, will continue to support the U.S. economy in 2019, and that the potential impact is both larger and more durable than consensus expectations. 
  • Economy. U.S. economic growth in the first quarter was better than expected, with early readings showing gross domestic product (GDP) growth of 3.1%. Data have weakened in the second quarter but bright spots remain. Supported by strong labor markets, consumer sentiment remains upbeat and consumer spending continues to be an important driver of growth; manufacturing, however, has seen a larger negative impact from trade.  

  • Fixed Income. Fixed income investors have benefited from falling rates due to subdued consumer inflation, a pause in rate hikes, and demand for U.S. Treasuries. Although a flattening yield curve has been troubling for some investors, we believe the flattening is due more to global investors searching for better yields than it is an indicator of looming recession.

  • Equities. The overall U.S. economic picture has supported continued expansion. Modest inflationary pressures helped boost demand and support corporate profit margins in the first quarter. Given solid fundamentals, we continue to believe corporate profits will exceed the current consensus expectations. 

View the complete publication, featuring insightful commentary, economic and market guidance, and more details on these themes and our investment recommendations.


IMPORTANT DISCLOSURES:

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. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

This research material has been prepared by LPL Financial LLC.