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Market Update: 08-13-18

Jerris Wealth Management Group LPL Research Weekly Market Update

LONGEST BULL MARKET EVER

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

The bull market continues to defy the skeptics and is now nearing a major milestone. On August 22, 2018, this bull market can overtake the bull market of the 1990s as the longest ever. From tariffs to trade wars to inflation to a flattening yield curve to a global economic slowdown, the headlines continue to cast doubt on the sustainability of this economic cycle and bull market. Although we see several potential stumbling blocks, we continue to believe this economy and stock market rally have plenty of fuel left in the tank.

Market Update: 08-06-18

Jerris Wealth Management Group LPL Research Weekly Market Update

FOCUS FAQs

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

Last week we had the pleasure of joining just over 3,500 LPL advisors at our Focus 2018 national conference in Boston. Many of you reading this were likely among them. The conference is an excellent opportunity for us in the LPL Research department to interact directly with our clients, and to learn about what they like and don’t like so we can better tailor our publications and investment options to them. Focus also gives our advisors a chance to ask us questions about the markets. In this week’s commentary, we share the most frequently asked questions from Focus 2018.

Market Update: 07-30-18

Jerris Wealth Management Group LPL Research Weekly Market Update

AGO ACTIVE?

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

Active management may be poised for a comeback. During the past several years, it’s been difficult for active managers to outperform equity benchmarks. There are a number of reasons for that, including the strength of the market, market distortions from central bank bond purchases, and high correlations between stocks. However, the tide has started to turn, which we believe sets active managers up for better relative performance opportunities in the coming years.

Market Update: 07-23-18

Jerris Wealth Management Group LPL Research Weekly Market Update

ANOTHER VERY STRONG EARNINGS SEASON EXPECTED

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

Second quarter earnings season is underway and may be another good one. Consensus estimates are calling for a 21% year-over-year increase in S&P 500 Index earnings for the quarter, setting up a second straight quarter of 20% or higher growth and marking the eighth straight quarterly increase [Figure 1]. Should results come in ahead of expectations as we expect, our data indicate it would mark the 37th consecutive quarter of earnings exceeding expectations. While tariffs have dominated headlines recently, and some companies are being disproportionately affected, we do not expect trade tensions to have much impact on overall results. The season kicks into high gear this week (July 23–27) with 175 S&P 500 companies reporting.

Market Update: 07-16-18

Jerris Wealth Management Group LPL Research Weekly Market Update

2018 MIDYEAR STOCK MARKET OUTLOOK SECOND HALF RALLY?

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

The current environment looks favorable for strong earnings and stock gains. We do expect volatility, but steady economic growth provides a strong backdrop and the potential for opportunity. The first half of 2018 saw the return of equity volatility after the docile trading patterns of 2017. The surge in bond yields after the January jobs report, along with the initial trade concerns in late March, resulted in the first market corrections (a pullback of at least 10.0%) since the Brexit vote in June 2016. Though higher bond yields caused market disruptions, rising market interest rates (especially from relatively low levels) have typically been associated with an improving economy and higher stock prices. As a result, when viewing market volatility in the context of steady economic growth, it is not something to fear, in our opinion, but to embrace, as temporary market selloffs may provide suitable investors with opportunities to rebalance portfolios toward long-term targets. Given that the Fed is well on its way to unwinding accommodative measures, we encourage investors to focus on the fiscal tailwinds of favorable taxes, regulation, and government spending, while identifying companies that are willing and able to take advantage of these developments.

Market Update: 06-25-18

Jerris Wealth Management Group LPL Research Weekly Market Update

TRADE TENSIONS PLAYBOOK

John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial

Escalating trade tensions have made for a difficult investing environment. This is not news to anyone at this point. But investors’ angst was ratcheted higher last week after the Trump administration played its next card — announcing tariffs on an additional $200 billion in Chinese goods — sooner than many expected. Certainly the stock market expressed displeasure, though the 0.9% drop in the S&P 500 for the week still leaves the index with a respectable 4% total return this year. Here we provide our playbook for trade tensions. For additional insights on the subject, see today’s Weekly Economic Commentary.

Our Team

Susan Jerris

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Jerris

LPL Registered Principal 
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Anthony Roble

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Roble

LPL Registered Administrative Assistant
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CA Insurance License #0K61923
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Diana Esperon

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Esperon

Administrative Assistant
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