LPL Financial Market Signals Podcast

"Final Four" Market and Economy Factors │LPL Market Signals Podcast

LPL Research

In this week’s Market Signals podcast, hear about four factors that could affect financial markets through the remainder of 2019 and four that could affect the overall economy.

Just because the Fed is on pause and has said they’re around neutral doesn’t mean the business cycle is nearly over.

- Jeff Buchbinder, LPL Equity Strategist

Subscribe to the Market Signals podcast series on iTunesGoogle PlaySpotify, or wherever you get your podcasts.

With the 2019 NCAA tournament Final Four set, it makes sense for this week’s Market Signals podcast to focus on a “final four” as well. The “four” in this case, however, are four important factors that may influence where financial markets go next. The LPL strategists also note an additional four factors that will likely affect the economy over the remaining year.

Four Factors for Financial Markets

The S&P 500 gained more than 13% in the first quarter, marking its best first quarter since 1998. The LPL strategists cite the following four factors as reasons this stock rally could continue or weaken: 1.) policy, 2.) the U.S. economy, 3.) rates, and 4.) profits. These factors will be extremely important for the remainder of 2019. The strategists see their expected effects to be potentially positive.

Four Factors for the Economy

On the economic front, there are also four factors likely to play significant roles in how things play out. They are 1.) the cautious Federal Reserve (Fed), 2.) a pickup in capital expenditures (CAPEX), 3.) global growth, and 4.) a rebound in consumer and business confidence.

The global growth theme is the most concerning, as Europe and other parts of the world economy continue to weaken. The strategists do view the Fed on pause a positive and look for the economy in general to improve during the second half of 2019.

Chart - April has been one of the best months for the S & P 500 Index

Stocks historically have done quite well during April. In fact, over the past 20 years no month has a better average return than the 1.7% return from the S&P 500 Index in April. Incredibly, this month has closed green 13 of the previous 14 years for the S&P 500 and 14 of 14 times for the Dow.


Tune In Now

Get the full story by tuning in to this week’s Market Signals podcast. Make sure you don’t miss an episode. Subscribe to the series on iTunesGoogle PlaySpotify, or wherever you get your podcasts.

If you’re a financial advisor and interested in learning how you can affiliate with LPL, talk to a recruiter now.





The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. All performance referenced is historical and is no guarantee of future results.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured. These products are not bank/credit union obligations and are not endorsed, recommended or guaranteed by any bank/credit union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.


For Public Use — Tracking #: 1-838245