LPL Research Releases 2024 Midyear Outlook: Still Waiting for the Turn
July 09 2024 - 9:00AM
LPL Financial LLC today released its 2024 Midyear Outlook, “Still
Waiting for the Turn.” Expanding on LPL Research’s 2024 Outlook, “A
Turning Point,” this midyear update offers fresh insights into the
economic and market landscape, along with the potential impact for
investment portfolios.
At the end of 2023, the LPL Research team posited that in 2024,
the markets would make a definitive turn to a more recognizable
place, marked by meaningful shifts in inflation, interest rates and
recession risk. At midyear, LPL professionals are still waiting for
that turn.
“Economic growth has continued to surprise to the upside,” said
Jeffrey Roach, PhD, Chief Economist at LPL Financial. “The U.S.
economy has continued to exhibit remarkable resilience, growing
beyond expectations despite facing high inflation and other
late-cycle pressures,” he added. However, the Outlook indicates a
potential slowdown, with consumer spending expected to decelerate
and labor market conditions expected to soften by the end of the
year.
Key Highlights from the 2024 Midyear Economic
Outlook:
-
Anticipated Economic Shifts: While the
economy remains robust and resilient, recent data suggests a
forthcoming slowdown. The strong consumer spending we’ve seen is
expected to decelerate, particularly on big-ticket items, and the
labor market may soften, with the unemployment rate projected to
rise in the latter half of the year.
-
U.S. Presidential Election: As
the closely contested rematch between Biden and Trump approaches,
market volatility is expected to rise, a common trend in election
years. Despite the political landscape’s influence and expected
volatility, broader economic forces and corporate health remain key
drivers of the market and economy. Regardless of what happens in
November, investors should keep a long-term perspective.
- Global
Market Considerations: The Outlook addresses the
implications of geopolitical tensions and trade policies,
particularly between the U.S. and China, which continue to
influence global market dynamics and investment strategies.
-
Investment Landscape: The report highlights
several key areas for investors to consider:
- Fixed
Income: With Treasury yields near their highest
levels in decades, fixed income has become an attractive asset
class. Investors are advised to focus on income generation over
price appreciation, especially as the Federal Reserve is expected
to cut rates by the end of the year.
-
Equities: The stock market has enjoyed strong
gains in the first half of the year, driven by anticipation of
looser Fed policy and robust corporate earnings growth. However,
elevated valuations and potential volatility, especially with the
upcoming U.S. presidential election, suggest a more cautious
approach moving forward.
“As we navigate a complex and shifting economic landscape, our
Midyear Outlook serves as a crucial barometer for advisors,
institutions and their clients,” says Marc Zabicki, Chief
Investment Officer for LPL Financial. “Understanding the underlying
factors driving market moves helps us to better prepare and adapt
investment strategies to meet future challenges and
opportunities.”
Important Disclosures
Please see the LPL Financial Research 2024 Midyear Outlook for
additional description and disclosure.
The opinions, statements and forecasts presented herein are
general information only and are not intended to provide specific
investment advice or recommendations for any individual. To
determine which investment(s) may be appropriate for you, please
consult your financial professional prior to investing.
Any forward-looking statements, including the economic
forecasts, may not develop as predicted and are subject to change
based on future market and other conditions.
Investing involves risk including the loss of principal.
The Standard & Poor’s (S&P) 500 Index tracks the
performance of 500 widely held, large-capitalization U.S. stocks.
All indexes are unmanaged and cannot be invested into directly.
About LPL Financial
LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the
principle that the firm should work for advisors and institutions,
and not the other way around. Today, LPL is a leader in the markets
we serve, serving nearly 23,000 financial advisors, including
advisors at approximately 1,100 institutions and at approximately
570 registered investment advisor firms nationwide. We are
steadfast in our commitment to the advisor-mediated model and the
belief that Americans deserve access to personalized guidance from
a financial professional.
At LPL, independence means that advisors and institution leaders
have the freedom they deserve to choose the business model,
services and technology resources that allow them to run a thriving
business. They have the flexibility to do business their way. And
they have the freedom to manage their client relationships because
they know their clients best. Simply put, we take care of our
advisors and institutions, so they can take care of their
clients.
Securities and Advisory services offered through LPL
Financial LLC (“LPL Financial”), a registered investment
advisor. Member FINRA/SIPC. LPL Financial and its
affiliated companies provide financial services only from the
United States.
Throughout this communication, the terms “financial advisors”
and “advisors” are used to refer to registered representatives
and/or investment advisor representatives affiliated with LPL
Financial.
We routinely disclose information that may be important to
shareholders in the “Investor Relations” or “Press Releases”
section of our website.
Connect with Us!
https://twitter.com/lpl
https://www.linkedin.com/company/lpl-financial
https://www.facebook.com/LPLFinancialLLC
https://www.youtube.com/user/lplfinancialllc
Media Contact:
Media.relations@LPLFinancial.com
(402) 740-2047
Tracking # 598691
LPL Financial (NASDAQ:LPLA)
Historical Stock Chart
From Jun 2024 to Jul 2024
LPL Financial (NASDAQ:LPLA)
Historical Stock Chart
From Jul 2023 to Jul 2024