LPL Financial Publishes Midyear Outlook 2021
“With a strong start to a bull market and a relatively calm market environment, it may be an ideal time for investors to get a financial plan in place with a trusted advisor, if they don’t already have one, to help hedge them against any unpredicted market events like the ones we saw in 2020” – Burt White
CHARLOTTE, N.C. – July 13, 2021 – LPL Financial LLC today announced that the firm’s “Midyear Outlook 2021” is now available in an interactive digital version and as a downloadable PDF. The report contains investment insights and market guidance from LPL Financial’s 29-person Research team, which currently has approximately $60 billion in assets under management.
Key insights and forecasts discussed in the Midyear Outlook 2021 report include:
- Economy: Speeding Up. The country has reopened and we believe there is still plenty of momentum to extend above-average growth into 2022. LPL researchers forecast 6.25 to 6.75 percent U.S. gross domestic product (GDP) growth in 2021, which would be the best year in decades.
- Policy: Taking a Back Seat. The economy was supported through the pandemic by more than $5 trillion in stimulus measures and extraordinary support by the Federal Reserve. Policy will take a back seat in 2021 as private-sector growth replaces stimulus checks.
- Stocks: Gaining Ground. Economic improvement should continue to support S&P 500 Index earnings, which had a stunning first quarter. While valuations remain somewhat elevated, LPL Research thinks they look reasonable after considering still low interest rates and earnings growth potential.
- Bonds: Safety Features. Inflationary pressure and economic improvement may put additional upward pressure on the 10-year U.S. Treasury yield. LPL Research anticipates the 10-year yield finishing 2021 in the range of 1.75 to 2 percent.
“After a 2020 we will never forget, we look ahead to the second half of 2021, and even into 2022, with optimism for the future,” said Burt White, LPL managing director and chief investment officer. “We believe we are early in the economic cycle and the next recession is potentially years away. With a strong start to a bull market and a relatively calm market environment, it may be an ideal time for investors to get a financial plan in place with a trusted advisor, if they don’t already have one, to help hedge them against any unpredicted market events like the ones we saw in 2020.”
LPL Financial Chief Market Strategist Ryan Detrick added, “The LPL Research team is actively watching the pace of the reopening, while keeping a close eye on inflation. Demand is strong, but labor shortages and supply chain issues could lead to increased prices. It is our goal to help investors understand these market challenges and encourage them to focus on staying the course to reach their long-term investment goals.”
About LPL Financial
LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader* in the markets we serve, supporting more than 18,000 financial advisors, 800 institution-based investment programs and 450 independent RIA firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to objective guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.
*Top RIA custodian (Cerulli Associates, 2019 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine June 1996-2020); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 as of June 2021
Securities and advisory services offered through LPL Financial LLC, an SEC- registered broker-dealer and investment advisor. Member FINRA/SIPC.
Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC. We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.
Please see the LPL Financial Research Midyear Outlook 2021 for additional description and disclosure.
The opinions, statements and forecasts presented herein are general information only and are not intended to provide specific investment advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Any forward-looking statements including the economic forecasts may not develop as predicted and are subject to change based on future market and other conditions.