LPL Research Market Signals Podcast

Let’s Talk About Inflation

LPL Research

LPL Research examines inflation concerns and explains why they think any increases in inflation will most likely be fleeting.

Subscribe to the Market Signals podcast series on iTunes, Google Podcasts, or Spotify and find us on the LPL Research YouTube channel.
 

 

Is higher inflation on the way? This is the question nearly everyone is asking and this week Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder explain why the answer is likely “no,” contrary to what so many expect. The LPL Strategists also take a look at April seasonality, along with the recent rough patch seen in some economic data.

Inflation

One of the top questions LPL Research receives is about inflation. With record spending, coupled with record monetary and fiscal stimulus, there are many who think massive inflation is coming. Ryan and Jeff discuss it is likely we could see as much as a 3% jump in inflation over the coming months, but this will likely be transitory. Factors such as technology, globalization, the structure of the workforce (more robotics), and the Amazon effect have held inflation back over the past decade are still in play and should contain inflation in our view.

April is here

Stocks seem to love the month of April, with the S&P 500 Index up 14 of the past 15 years during this month. Ryan and Jeff discuss it isn’t just recently; since 1950, this is one of the strongest months as well. 

Chart - April Has Been Kind to Stocks

Slowdown?

Pockets of economic data are showing a potential slowdown. Ryan and Jeff, though, think it is mostly weather related and the great reopening is alive and well. More people are going to restaurants and movies, while millions are getting vaccinated each day.

Tune in now

Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Podcasts, or Spotify and find us on the LPL Research YouTube channel.

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IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC. 

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