LPL’S U.S. REAL GDP FORECAST CHANGE
John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
We have lowered our projections for U.S. gross domestic product (GDP), the 10-year U.S. Treasury yield, and operating earnings for the S&P 500 Index in 2019, as we noted in the August 19 Weekly Market Commentary: Tweaking Forecasts, and introduced our preliminary 2020 forecasts. Over the next three weeks, we will highlight our reasoning behind these changes. Delayed prospects for a trade agreement between the United States and China remain central to our projections for economic growth and financial market performance in the coming months and quarters.
Tariffs and threats of escalation weigh on business investment. As we emphasized in our Midyear Outlook 2019, business investment remains a critical component in determining the extent to which this record economic expansion can persist. As businesses invest in their futures, productivity growth often...