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Financial Outlook for 2019 | LPL Research Market Signals Podcast

LPL Research

In this special edition of the Market Signals podcast, our Research strategists discuss the financial outlook for 2019, including the effects of fiscal policy on the economy and financial markets.

You look at the fiscal policy as a percent of GDP, this year vs. next year, it’s actually larger next year. Some think the fiscal stimulus in 2018 was just a one-time sugar high, but in 2019 the door is still open for fiscal policy to help drive this economy.

- Ryan Detrick, LPL Senior Market Strategist 

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In today’s podcast, LPL Research strategists discuss the recently released LPL Research Outlook 2019 publication, “FUNDAMENTAL: How to Focus on What Really Matters in the Markets.” The publication, available here, contains investment insights, market guidance, and a discussion of the financial outlook for 2019.  

Among the key topics is what next year may hold for bonds, stocks, and the overall economy. The LPL Research strategists expect continued economic growth and believe that 2019 may be another good year for US Stocks

The strategists also talk about the effects of fiscal policy on the economy and the financial markets, and the potential to extend the duration of the current business cycle. In addition, they cover some of the potential risks and “what if scenarios” that have many investors worried.

Noting their expectations that we’re likely in the later stages of this economic cycle and may see further market volatility, the strategists encourage investors to be prepared for a potential slowdown or bear market in the future.  They also stress the importance of investors remaining calm and, where appropriate, basing any investment decisions on the fundamentals rather than acting on speculative headlines. 

Chart - Businesses Still Showing Plans for Robust Spending

One of the key drivers for growth in 2019 is capital equipment spending. As confidence improves, companies will invest in themselves and this will help the overall economy and productivity.

Chart - Economic Expansions and Bull Markets

We expect 2019 to see an expanding economy and avoid a recession. In the end, we believe this will become the longest economic cycle of growth since WWII, matching the current streak for the longest bull market since WWII.

Listen in to the Market Signals podcast for more insights into what 2019 holds for the stock market and the economy.

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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.

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