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Market Update: 12-10-18

Jerris Wealth Management Group LPL Research Weekly Market Update

RETEST

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

We view last week’s market decline as a retest of the October–November lows. The S&P 500 Index fell 4.6% last week, leaving the index in line with the low of the autumn correction and 10% off the September highs [Figure 1]. Losses were driven primarily by three issues: the risk that U.S.-China trade talks fall apart, concerns about a Federal Reserve (Fed) policy mistake, and sharply lower oil prices, all of which contributed to increasing concerns about slowing global growth or potential recession. This week, we summarize our views on these issues and discuss prospects for a potential stock market rebound based on technical analysis.

Market Update: 12-03-18

Jerris Wealth Management Group LPL Research Weekly Market Update

STRONG WEEK AHEAD OF BIG WEEKEND

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

It was a great week for the stock market. The S&P 500 Index rallied 4.9% last week, leaving the index less than 6% from its record high, on September 20, 2018 (excluding today’s gains) [Figure 1]. Gains were driven by increasing optimism (now proven to be warranted) for progress on U.S.-China trade talks at the G20 summit over the weekend and a more dovish outlook from Federal Reserve Chair Jay Powell (see today’s Weekly Economic Commentary for more). This week we share our thoughts on these major market-moving events and reiterate our positive stock market outlook.

Market Update: 11-26-18

Jerris Wealth Management Group LPL Research Weekly Market Update

CORPORATE AMERICA IMPRESSES AGAIN

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

Corporate America produced another outstanding earnings season. We expected another quarter of strong earnings growth, and corporate America delivered even more than we anticipated. Third quarter numbers were excellent, even if the boost from the new tax law is excluded, as has been the case throughout this year. Revenue and earnings upside compared with expectations was particularly impressive, making prior assertions of an earnings growth peak premature. We’re also impressed by the resilience of companies’ outlooks in the face of tariffs and ongoing trade policy uncertainty.

Market Update: 11-12-18

Jerris Wealth Management Group LPL Research Weekly Market Update

MIDTERM TAKEAWAYS

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

In last week’s midterm election, Republicans held onto the Senate and the Democrats claimed control of the House, bringing potential gridlock to Congress. This week we discuss some investment implications, including highlighting the positive seasonal tailwinds now in place for stocks. We also discuss potential winners and losers at the sector level post-election, and some risks that the leadership change in Washington may present. Most importantly, with the election out of the way, we welcome the opportunity to focus on fundamentals, which we believe remain quite positive.

Market Update: 10-29-18

Jerris Wealth Management Group LPL Research Weekly Market Update

ANOTHER TOUGH WEEK

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

It was another tough week for stocks. The S&P 500 Index was down just shy of 4% last week, briefly dipping intraday into correction territory (more than 10% off the all-time high) and putting October on track to be the weakest month for stocks since the financial crisis. Concern about an earnings slowdown and a potentially overly aggressive Federal Reserve (Fed) seemed to be the primary drivers, but market participants saw little, if anything, encouraging out of the other “bricks” in the stock market’s wall of worry. These include the U.S.-China trade dispute, Italy’s deficit spending, Brexit uncertainty, Saudi tensions, and policy uncertainty ahead of midterm elections. An exhaustive list for sure, though based on closing prices the S&P 500 has managed to avoid a 10% decline from the record high on September 20. So where do we go from here?

Market Update: 11-05-18

Jerris Wealth Management Group LPL Research Weekly Market Update

THE BRIGHT SIDE

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

“It is always darkest just before the day dawneth.”—
Thomas Fuller | English theologian and historian
The quote above is better known today as “It is always the darkest just before dawn.” Well, October was one of the worst months we’ve seen in years for stocks, but we see a much brighter future. The next two months could have a nice year-end rally thanks to historically bullish seasonal patterns during midterm years and the extreme buying strength we saw last week. Yes, there is a potential bright side to what could happen next!

Our Team

Susan Jerris

Susan
Jerris

LPL Registered Principal 
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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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