LPL Research shares its economic and market forecasts for 2021 from the new Outlook 2021: Powering Forward. Plus, learn why LPL Research believes the new bull market and economic cycle of growth may continue to grow as we head into 2022.
Stocks Sparked to Grow
A strong earnings rebound could allow stocks to grow into somewhat elevated valuations. LPL Research has announced an S&P 500 Index fair value target of 3,850–3,900 in 2021, with potential for upside with better than expected COVID-19 vaccine progress.
Bonds Stay in Their Lane
Inflation probably will remain limited, and the Federal Reserve is expected to keep rates low, but a better economy could put upward pressure on rates. The 10-year US Treasury yield may finish 2021 in the 1.25%–1.75% range with a bias to the lower end, according to LPL Research.
A new outlook for policy and the economy
Central banks will continue to support the recovery, and the presumably divided US Congress may limit some of the more extreme measures, such as tax and regulation increases. The economy likely has been in an expansion for a few months, suggesting this new expansion could have years left.
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.
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.
For Public Use — Tracking #: 1-05086222 (12/21)