LPL Research examines the implications of depleted excess savings on consumer spending and the broader economy.
Since the days just preceding Tax-Day, April 15 th, the US equity market has been on a tear upward that started back in October. The US Treasury bond markets seem to have been the reason for this. After the Fed raised interest rates seven times back-to-back, to stave off inflation, the interest rates rolled over. But since the beginning of the year, the bond market has not been having such a good time of it...
With Q1 2024 behind us, we explore top contributors and detractors to performance across various asset classes and sectors. We also compare Q1 performance with our current Strategic and Tactical Asset Allocation Committee (STAAC) positioning.
10 Things You Should Know About Politics and Investing
Bullion broke new ground last week after rallying to a record high. Growing investor confidence for a Federal Reserve (Fed) rate cut by this summer dragged down yields and the dollar, creating a tailwind for gold. The breakout above key resistance at $2,075 was also a major technical development, confirmed by bullish momentum that suggests the rally could continue. Global central bank demand has been another key catalyst and has shown no sign of slowing down, while a rebound in demand from gold-related exchange-traded funds (ETFs) could provide additional support for the yellow metal.
Key Takeaways Energy is struggling to keep up with the broader market this year. However, an improving technical setup for energy stocks points to a potential rebound for the sector. Seasonal tailwinds suggest this inflection point could be near. Crude oil is also making technical progress, and the futures curve is indicating the supply and demand backdrop is improving. Fundamentals remain bullish for the sector. Energy stocks are trading cheap relative to the S&P 500...
Past performance is no guarantee of future results. For illustrative purposes only and not indicative of any actual investment.
How to age-proof your most valuable asset
For the last number of weeks, I have been talking about how it could be expected that the markets are prepared for a digestion or a minor correction.
Despite a heavy lobbying effort to cajole OPEC+ members to agree to a unified cut in oil production, Saudi Arabia, the de facto leader of the energy cartel, was unable to orchestrate anything more than pledges on a “voluntary” basis.
Following the Federal Reserve’s (Fed) aggressive rate-hiking campaign in 2022 and 2023, stocks are entering a phase in which the market narrative is focused on interest-rate stability — as inflation, we believe, comes down further.
Shipping disruptions in the Red Sea could temporarily impact goods prices but not at the same magnitude as during the pandemic.
