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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!

Market Update: 10-22-18

Jerris Wealth Management Group LPL Research Weekly Market Update

EARNINGS UPDATE: SO FAR SO GOOD

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

Earnings season off to a good start. Third quarter earnings season is rolling and, so far, results have been quite good overall, supported by strong U.S. economic growth, robust U.S. manufacturing activity, tax cuts, and big increases in energy and financials sector profits. Below we recap the results of earnings season thus far, discuss why we expect strong results to continue throughout the reporting season, and highlight several keys we are watching.

Market Update: 10-15-18

Jerris Wealth Management Group LPL Research Weekly Market Update

PERSPECTIVE ON MARKET VOLATILITY

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

After several months of historic calm, stocks sold off sharply last week. Rising interest rates and trade war fears were cited as the primary causes of the sell-off that caused the Dow Jones Industrial Average to drop more than 1300 points on Wednesday and Thursday combined. Concerns about corporate profit margins peaking and a potentially overcrowded tech trade also likely played a role in upsetting a market that had been extraordinarily calm over the past six months. The S&P 500 Index did manage to pare losses, thanks to solid gains on Friday, but still ended the week down over 4%, for the worst week since March. Here we share some perspective on the latest bout of market volatility, which is not particularly unusual, and share our thoughts on where stocks may go from here.

Market Update: 10-08-18

Jerris Wealth Management Group LPL Research Weekly Market Update

GLOBAL EQUITY MARKET OUTLOOK: FAVOR U.S.; STICK WITH EM

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

We continue to favor the United States and emerging markets (EM) over developed foreign markets for global equity allocations. We see the U.S. economy as the primary driver of our forecast for 3.8% global gross domestic product (GDP) growth in 2018, supported by new fiscal policies, while Europe and Japan may lag.* The United States remains a global earnings standout as well. Despite underperformance this year, we continue to see upside potential in EM due to attractive valuations, recent economic growth, favorable demographics, and the potential for resolution to the U.S.-China trade dispute later this year.

Our Team

Susan Jerris

Susan
Jerris

LPL Registered Principal 
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CA Insurance License #0662706
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Anthony Roble

Anthony
Roble

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

Diana
Esperon

Administrative Assistant
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