CALL: (888) 717-5200 or (949) 861-4747 |  Account View: LOGIN

Market Update: 04-22-19

Jerris Wealth Management Group LPL Research Weekly Market Update

FADING MOMENTUM

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

U.S. stocks are sitting at the same levels they were seven months ago, but the path hasn’t been straight. Equity investors have been on a bumpy ride since September 2018, and investors’ resolve has been tested amid back-and-forth in trade negotiations, a historic government shutdown, Brexit, the Federal Reserve’s (Fed) U-turn in policy, and signs of a global slowdown.

Market Update: 04-15-19

Jerris Wealth Management Group LPL Research Weekly Market Update

WHAT’S PRICED IN

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

After such a strong rally for stocks this year, you may be wondering what could drive stocks higher from here. With the S&P 500 Index less than 1% away from its all-time high set September 20, 2018, a lot of good news has been priced into stocks. You may also be wondering what possible disappointments could cause stocks to pull back from here, especially given the soft patch in the U.S. economy and corporate profits during the first quarter.

Market Update: 04-08-19

Jerris Wealth Management Group LPL Research Weekly Market Update

Q1 EARNINGS PREVIEW LIGHT AT THE END OF THE TUNNEL

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

First quarter earnings season kicks off this week and the bar seems low. Consensus estimates for first quarter earnings season are calling for a slight yearover- year decline in S&P 500 Index earnings amid the economic soft patch at the start of the year. Marking the one-year anniversary of the tax reform earnings boost, in the first quarter of 2018, has made the annual comparison more difficult, as shown in Figure 1. We expect roughly flat earnings for the quarter, but the streak of seven straight quarters of earnings growth could come to an end. Here we preview the upcoming earnings season, highlight some key themes, and share some thoughts on the 2019 corporate profit outlook.

Market Update: 04-01-19

Jerris Wealth Management Group LPL Research Weekly Market Update

THE STOCK MARKET’S FINAL FOUR

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

The NCAA Final Four is set. On the men’s side, Auburn, Michigan State, Texas Tech, and Virginia are headed to Minneapolis to determine this year’s college basketball national champion. On the women’s side, UConn and Oregon punched their tickets over the weekend while the other two spots will be decided tonight — Baylor and Notre Dame are the favorites.

Market Update: 03-25-19

Jerris Wealth Management Group LPL Research Weekly Market Update

BALANCED RISK REWARD

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

Risk-reward trade-off in stocks has become less attractive following recent gains. Stocks have had quite a run this year, with the S&P 500 Index up 12% as of March 22, 2019, and 19% since the December 24 lows [Figure 1]. The index now sits just 5% below its record high set on September 20, 2018, and 7% from our year end 2019 fair value S&P 500 target of 3,000. Given this move in stocks, coupled with a slightly weaker economic and corporate profit outlook, we believe it is prudent to readjust domestic equity allocations back to market weight.

Market Update: 03-18-19

Jerris Wealth Management Group LPL Research Weekly Market Update

MOVIN ON UP (IN MARKET CAP)

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

Large caps may be better positioned than small caps, given where we are in the business cycle. Small cap stocks have performed well so far in 2019, with the Russell 2000 Index, the most popular small cap benchmark, up 15.2% year to date compared with the 12.6% gain in the large cap S&P 500 Index. Small caps tend to do better when economic growth expectations improve and stocks broadly rally, which has been the case since late December 2018. However, we believe the environment is getting tougher for small caps, for reasons we discuss below.

Our Team

Susan Jerris

Susan
Jerris

LPL Registered Principal 
Email Susan
CA Insurance License #0662706
Broker Check
 
Anthony Roble

Anthony
Roble

LPL Registered Administrative Assistant
Email Tony
CA Insurance License #0K61923
Broker Check
 
Diana Esperon

Diana
Esperon

Administrative Assistant
Email Diana