LPL Financial Strategists Jeff Buchbinder and Barry Gilbert preview third-quarter earnings season. LPL Research expects solid earnings growth for S&P 500 Index companies in the mid-to-high 30s, though upside surprises are unlikely to be as big as in recent quarters. As the numbers roll in and companies share their thoughts on the future, Jeff and Barry are interested in how long companies expect supply chain issues and materials and labor shortages to last. Wage pressures are also of interest.
Retail sales came in much better than economists’ expectations for September. The solid numbers came in the face of both demand and supply challenges related to COVID-19. Considering consumers still enjoy significant excess savings, rising wages, and a healing job market as COVID-19 cases decline, the gains perhaps shouldn’t have come as a surprise.
Finally, Jeff and Barry discuss some of the toughest asset allocation questions facing investors these days. Elevated domestic stock valuations following strong gains since the pandemic lows coupled with low interest rates make for a challenging asset allocation environment. They gaze into their crystal balls to try to help investors by addressing these tough questions.
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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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