Blog

Lessons from 2023’s Five Worst S&P 500 Stocks

As the rollercoaster of financial markets in 2023 came to a close, certain stocks stood out for all the wrong reasons. Among them were five notable names: Moderna, Enphase Energy, Dollar General, Pfizer, and Walgreens Boots Alliance....

Inflation and Its Impact on Markets and Portfolios

In the ever-evolving world of finance, staying abreast of economic indicators is crucial for investors looking to make informed decisions. One such key indicator is inflation, which recently made headlines with the release of data in...

5 Financial Wellness Myths Surrounding Near Retirees

When people think of retirement, they often have an image formulated in their minds of what it will be like. The thing about it, the reality might not be what they expected. The internet is full of retirement information; however, not...

Dow Rallies to Record Highs

Key Takeaways The Dow Jones Industrial Average (INDU) has gone from correction to record highs in only 32 trading days. Broadening participation predicated on falling interest rates and signs of a soft-landing scenario have...

Be Careful What (Fed Rate Cuts) You Wish For

Market-watchers have been intensely focused on the Federal Reserve (Fed) this year. Recently, they’ve mostly opined on when the first rate cut might be coming and, generally, making the assumption that a rate cut would be good...

Is There Any Income Left in Fixed Income?

After seemingly only heading in one direction (higher) as of late, U.S. Treasury yields tumbled in November on the back of softer economic data along with signs that the Federal Reserve (Fed) is likely done raising interest rates....

Trusts and Year-End Planning: A Checklist

A trust is a legal vehicle that protects your assets that contains instructions for your assets when you die or become incapacitated. When you set up a trust, you transfer assets from your name into your trust's name while you still...

The S&P 500 Total Return Has All-time Highs in Sight

Following its post-summer malaise, the S&P 500 has sternly gained steam, bouncing 9.5% off the October 27 low. Fueled by a softening CPI print, surging performance from top-heavy constituents, and a favorable technical backdrop, the...

Why the Bond Market Doesn’t Care About the Moody’s Downgrade… Yet.

Late Friday afternoon, rating agency Moody’s announced that it had downgraded is credit rating outlook on U.S. government debt from stable to negative. Moody’s cited wide budget deficits and political polarization as...

Call it a Comeback

Key Takeaways: Oversold conditions and tumbling interest rates have brought buyers back into equity markets this week. The S&P 500 has recaptured its closely watched 200-day moving average (dma). Historically, index returns following a...

Spending Growing Faster Than Income

Key Takeaways: Adjusted for inflation, consumers increased spending in each of the last four months while real disposable income fell over the same period. Clearly, this can’t last much longer. Auto incentives brought in buyers...

Bull Market Check-Up

Key Takeaways: The S&P 500 wrapped up the first year of the bull market last week. While the 21.6% gain was historically underwhelming, it is understandable given the challenging backdrop of global tightening, surging interest rates,...

Seven Things to Know about Government Shutdowns

The government is likely to shut down on October 1, as Congress has failed to agree on some type of funding legislation for the 2024 federal fiscal year. Lawmakers are supposed to pass 12 different spending bills to fund agencies...

Can the Dollar Recovery Continue?

Key Takeaways: The dollar is trading near an inflection point. A breakout above 106 would imply a bottom has been set in the greenback. Further upside in the dollar would create additional headwinds for most stocks and commodities....

An Essential Guide to Estate Planning Preparedness

A recent survey by Caring.com found that a whopping two in three American adults do not have an estate plan1—an alarming statistic, considering that an estate plan can protect your assets and ensure that they go to the right...

A Financial Checklist for Life-Changing Events

When it comes to financial planning, people often think of financial professionals as people who assist with strategies for retirement planning. That is one aspect of their job; however, financial planning and working with a financial...

Five Things: Muni Edition

It’s been another volatile calendar year for municipal (muni) investors. While generally outperforming taxable core bonds so far this year (as proxied by the Bloomberg Aggregate Bond Index), the Bloomberg Muni Index has...

September Spoiler?

Key Takeaways: The S&P 500 snapped a five-month winning streak in August. The drawdown last month was orderly, which we view as a good sign for the health of this bull market. With the soft-landing scenario gaining traction, and...

Cash Piling Up on the Sidelines

Key Takeaways: Cash in money market funds continues to climb in record-high territory. Rising interest rates supported by the Federal Reserve’s (Fed) higher-for-longer monetary policy and turmoil in the regional banking space...

Yield on the Rise—Too Much Too Fast?

Key Takeaways: Yields have moved a little too much too fast for equity markets, pushing the correlation between stocks and 10-year Treasury yields into negative territory for the first time since March. From a technical perspective,...

What a Pullback Could Look Like

Key Takeaways: While there is strong support for stocks being in a bull market, overbought conditions, weak seasonality, rising interest rate volatility, and ongoing uncertainty over monetary policy suggest a shorter-term pullback in...

The Energy Sector is Getting Interesting Again

The energy sector has recently re-emerged into the spotlight as a confluence of events have driven a shake-up in prices and profitability. The S&P 500 Energy Sector posted a 7.4% gain in July and outperformed all sector peers. Major...

Credit Card Balances Foreshadow Weakening Consumer

Key Takeaways: Credit card debt hit a new high in the first quarter of this year, just shy of a trillion dollars and rates on card debt also hit a new high since the data series began in 1972. The average credit card debt at the end of...

Retirement Re-education: Back to School Time for Retirement Planning

Retirement planning is a constantly evolving process. Strategies that may have worked fine a few years ago may no longer be the optimal direction to continue. Your life may have taken unexpected turns, you may have different retirement...

5 Ways to Improve Your Financial Awareness

Regardless of what you do or how much you earn, you deal with money on a daily basis. The more you understand about finances, the more effectively you will be able to manage yours. Yet, many people lack financial literacy skills. One...

Understanding 401(k) and IRA Withdrawals for Education Expenses

A student's education expenses may be reduced when a parent uses their tax-advantaged retirement account to help cover tuition and other related costs. With many students graduating with college loan debt, using a 401(k) or IRA may...

The Different Stages of Financial Freedom

If you're living paycheck-to-paycheck or stuck in a job you don't love just to pay the bills, it can be easy to feel as though you're financially trapped. But financial freedom doesn't need to be elusive—with some focused and...

Value Investing and Today’s Affluent Portfolio

Every consumer likes a good bargain, particularly value investors, who seek out stocks trading for less than their intrinsic value. By choosing companies the market has undervalued, or investing in mutual funds with similar objectives,...

The Younger Crowd is High on Confidence

Highlights:The Conference Board Consumer Confidence Index (CCI) increased to 117.0 in July, up from 109.7 in June.Consumers under the age of 35 contributed the most to the increase, as the index for the under 35 cohort reached 135.6,...

Pause and Reflect

Key Takeaways:As expected, the Federal Reserve (Fed) paused its rate-hiking cycle last week after 15 consecutive months of tightening. Over the last 35 years, there have been five other monetary policy periods when the Fed paused after...

Volatility Regime Shift

Key Takeaways:Evidence of a regime shift from high to low implied volatility is building. The CBOE Volatility Index—or more commonly referred to as the VIX or ‘fear gauge’—has recently dropped to multi-year lows...

Strong First 100 Days a Positive Sign for the Rest of 2023

Thursday was the 100th trading day of 2023, and a productive 100 days for stocks it was. Through that 100th trading day on May 25, about 40% of the way through the year, the S&P 500 Index has gained a solid 8.1% (excluding...

Private Credit – The Once Niche Market that has Become Mainstream

Private Credit has become a main player in the lending market, which used to be predominantly controlled by the banks. As seen in the chart below, assets under management have grown substantially in recent years, from $500 billion in...

Stock Returns and Recessions Around Inflation Peaks

OVERVIEWThe Consumer Price Index (CPI) peaked almost a year ago now in June 2022.Historically, CPI peaks tend to come around the start of a recession on average. Clearly that wasn’t the case this timeStock market risks have been...

Small Business Owners: Are You Retirement Ready (or Not)?

Whether you are an employee in corporate America or a small business owner, retirement is a part of life. For many, the thought of retiring and whether or not you are ready to take those first steps might be overwhelming or...

3 Tips for Preserving Wealth in Your Golden Years

After spending so much of your life saving for retirement, it may be challenging to transition from depositing funds to withdrawing them. You may wonder whether there is any way to maintain your lifestyle and preserve your wealth to...

Fed Sets Up for a Pause

OverviewThe Federal Reserve (Fed) increased its policy rate for the tenth consecutive time, pushing the upper bound of the fed funds rate to 5.25%, the highest since August 2007.In the press conference, Chairman Powell was careful to...

Death Cross Sounds a Lot Scarier Than It Is

Few, if any, technical analysis patterns have a more ominous name than the “death cross.” This pattern is simply when the 50-day moving average (dma) for a security or index crosses below the 200-dma. While you could look...

Money Milestones: 4 Financial Goals for Older Individuals

If you saved for retirement for a while, you might look forward to a break from financial responsibility for the remaining portion of your life. But striving for economic betterment should not end when you hit retirement. You may...

Volatility at Lowest Level Since 2021 – What Could This Mean for Stocks?

Implied volatility, as measured by the Chicago Board Options Exchange (CBOE) Volatility Index (VIX), closed yesterday at 16.46, its lowest closing level since mid-November 2021. Today we take a look at possible reasons for the decline...

The 60/40 Is Back…Perhaps Even Long Term

There deservedly was a lot of hand-wringing about the death of the 60/40 portfolio in 2022, a portfolio of 60% stocks and 40% bonds. As we stated back in June, the call for the demise of the 60/40 had likely come too late. Even at...

First Quarter Market Observations

An eventful first quarter just wrapped up. In today’s blog, we make seven market observations from first quarter performance and share our thoughts on what these performance trends could mean for our outlook.Growth Dominated...

Can the Spring Melt Up Continue?

Key Takeaways:March was a volatile month, but seasonality patterns prevailed, as stocks stuck to the script of back half outperformance.April seasonality trends suggest the melt up could continue. Since 1950, the S&P 500 has posted...

Three Takeaways from the Fed Decision

OverviewAs we expected, the Federal Reserve (Fed) raised the fed funds rate by 0.25%, pushing the upper bound to 5.00%.Financial conditions were stable enough for the Federal Open Market Committee (FOMC) to release updated projections,...

Dissecting Recent Bank Failures

Bank Failures Raise Market DistressStock and bond market activity was materially shaken last week as Silicon Valley Bank (SVB), the California bank subsidiary of SVB Financial Group (SIVB), fell into FDIC receivership. SVB is...

What Can March Seasonals Tell Us About the Outlook For Stocks?

As a rough February for the markets draws to a close, with a 2.3% decline in the S&P 500 Index, we look at what clues seasonality data may give us for stock market performance over the coming months. Turns out that while, historically,...

Waiting for New Highs

Financial markets have experienced quite a bit of change this year in just two short months. We started the year hopeful that stocks would benefit from a better economic and monetary policy environment by the spring, but recent...

Five Things to Know About Preferred Securities

Preferred securities are one of the best performing asset classes this year, with the ICE Core Plus Fixed Rate Index up over 13% year to date. Moreover, index yields remain elevated so these securities could be an attractive option for...

S&P 500 and Recessions

Consensus still has a recession in the next year more likely than not, although we believe it would probably be relatively shallow if it occurred and the possibility of a soft landing is increasing. We view most of the recession risk...

What You Should Know About the Latest Fed Action

What a Difference a Year MakesA year ago today, the federal funds rate was close to zero, consumer price inflation reached 7.9%, and yet the 10-year Treasury yield was 1.79%. What a difference a year makes. Inflation clearly had more...

Opportunities in 2023

Whether you’re one to set ambitious New Year’s resolutions or simply use the beginning of the year to reset on a few habits, there’s almost always some value in reflecting on the past year before looking ahead. The...

Solid End to 2022, but Risks to U.S. Economy Rising

Solid Quarter to End 2022 but Tougher Sledding in Q1The U.S. economy grew at a 2.9% annualized rate in the fourth quarter, slightly better than economists’ forecasts and driven by inventories, trade, and government spending. The...

Earning Down, Stocks Up? Not as Uncommon as You Think

Investors often talk about how earnings drive stock prices. But that begs the question how so many strategists and pundits expect earnings to fall in 2023 and stocks to rise? That’s our view in LPL Research.Let’s look at...

Consumer Inflation Falls Below 1% Over Second Half of 2022

We received our final reading on Consumer Price Index (CPI) inflation for 2022 this morning, which gave us the inflation numbers for December 2022. Helped by declining energy prices, the index fell 0.1% in December, in line with...

How SECURE 2.0 Makes Saving for Retirement Easier

There was good news for those saving for retirement in the recent appropriations bill passed to fund the government, signed into law by President Biden on December 29, 2022. The larger bill included a set of retirement reforms called...

Reasons for Optimism

We wish you a happy New Year and hope you were able to close out 2022 with friends and family.The beginning of a calendar year is often the time when the previous year’s reflections transition to a new year’s hopes. Given...

Fed Makes Hawkish Tilt

Slower Growth and Higher InflationAs expected, the Federal Open Market Committee (FOMC) increased the fed funds rate yesterday by 0.50% and made upward revisions to both inflation forecasts and interest rate forecasts in the next few...

Credit Usage Rising But No Red Flags Yet

Should We Be Nervous About Rising Credit Usage?Consumers are in a pinch: inflation is high and inflation-adjusted wage growth is weak. To support spending habits, consumers are tapping into credit and savings to bridge the gap between...

Outlook 2023: Finding Balance

Through all the challenges, newfound opportunities, and every high and low we’ve experienced during the last couple of years, it’s no surprise why we might be striving for more balance. Whether it’s about the markets...

Job Market Remains Resilient Despite Higher Rates

The economy added 263,000 jobs in November, a decrease from October’s upwardly revised 284,000 but a large upside surprise from the pre-release consensus estimate of 200,000, highlighting the continued resilience of labor markets...

Kick-Starting Your Retirement with a 401(k) Plan

The 401(k) pension plan, named after that section of the Internal Revenue Service Code that created it, has become one of the most popular retirement plans in the market. (A similar plan, the 403(b), is often available to employees of...

A Path to Setting and Reaching Your 2023 Goals

Setting goals for a new year can feel overwhelming.  We all know that resolutions don’t last, but we also feel the energy that comes with a new year of possibilities. Here’s a clearer path for setting and...

5 Do’s and Don'ts for Charitable Giving During the Holidays

The fourth quarter holidays are often seen as one of the prime times to take out your checkbook — not only do many charities put in extra efforts helping others this time of year, but donating is also a smart financial move....

Are Post-Election Trends Supportive for Stocks?

Now that the dust has largely settled on the 2022 midterm elections, with the Democrats retaining control of the Senate and the Republicans taking a narrow majority in the House, we take a look at some of the historic market trends...

Did Retail Sales Change the Market Narrative?

Nominal retail sales in October rose 1.3% from a month ago, strongly beating expectations. Market watchers like to transform this nominal report into an inflation-adjusted estimate, which better corresponds to other real economic...

Inflation Tide Turning

After many months of inflation coming in above expectations, investors finally got a more favorable report with the October Consumer Price Index (CPI) data and are cheering it with a big stock market rally on the news.Both core and...

Goldilocks Jobs Report Boosts Fed Slowdown Hopes

The U.S. Labor Departments nonfarm payrolls report released today showed encouraging signs for the Federal Reserve (Fed) that a “soft landing” for the economy may still be achievable. Markets responded positively to the...

Looking Ahead

October is now behind us and it has delivered on its track record as a historically favorable month for stocks, offering some respite for investors as major equity indices rose for the month. The downside pressure on equities had...

What to Say About the Rebound in Growth

After two consecutive quarters of negative growth, the U.S. economy grew at a 2.6% annualized rate in the third quarter, driven by a resilient consumer sector. Real personal spending, roughly 70% of the economy, grew 1.4% annualized,...

Why You Should Factor Long-Term Care into Your Estate Plan

A solid estate plan should not only provide for your assets after you pass, but also plan for your long-term care while you're alive. With the median cost of a long-term care facility approaching $8,000 per month, paying for long-term...

A Year-End Wealth Planning Guide

As we approach the end of the year, you may want to review areas that may impact your wealth and estate planning next year. In this year-end planning guide, we examine four critical areas to consider that may affect your finances:...

Trusts and Year-End Planning: A Checklist

A trust is a legal vehicle that protects your assets that contains instructions for your assets when you die or become incapacitated. When you set up a trust, you transfer assets from your name into your trust's name while you still...

Five Questions to Ask As You Consider Retiring

You might be thinking about retiring, but how do you know when you are really ready for it, mentally and financially? For decades, the normal retirement age was 65. This was when you became eligible for Social Security and Medicare....

Fewest up Days Since 1974 as Volatility Continues

Investors who feel like there have not been many good days to cheer so far this year are correct to think that way. As shown in the LPL Research Chart of the Day, the year-to-date percentage of days that the S&P 500 has seen a positive...

How Estate Planning Can Help Prepare for Long Term Care

The cost of long-term care can vary widely based on location (both city and state) and level of care needed. However, one thing is for certain: with 7 in every 10 people requiring long-term care at some point, preparing for this...

CPI Disappoints

DisappointingThe core Consumer Price Index (CPI), which excludes food and energy, rose to a multi-decade high in September, disappointing both investors and policy makers. The CPI is one, but not the only metric for inflation.September...

Checking the Gauges on Potential Market Capitulation

The S&P 500 hit a fresh year-to-date closing low of 3,584 on Friday September 30 before rallying almost 6% over the next 2 trading days, leading many investors to again wonder was that the bear market low? We first asked...

Could the Worst be Behind Us?

First, I want to acknowledge the tremendous damage and displacement caused by Hurricane Ian. My thoughts are with those impacted by this devastating storm.This has clearly been a challenging year for households. Stocks and bonds are...

Long-Term Care: Exploring Your Options

Have you ever thought about what would happen if you or a family member were no longer able to live independently? What if your elderly parents were no longer able to drive or perform basic activities of daily living, such as bathing...

How Markets Respond to Drawdowns

“Everything in boxing is backwards.” -Eddie Dupris, “Million Dollar Baby”When markets are down, the natural bias is to sell. But looking at history, the more the S&P 500 is down, the better it does in the next...

A Bit More Pessimistic, A Lot More Realistic

The Federal Open Market Committee (FOMC) increased the target rate by 75 basis points (bp) to a 3.25% upper bound and delivered a more pessimistic outlook in their published Summary of Economic Projections.The Committee hiked...

Inflation Is High But Inflation Expectations Are Still Anchored… For Now

Tuesday’s Consumer Price Index (CPI) release surprised to the upside with core inflation remaining stubbornly high. (For more details on Tuesday’s release, please see our blog post here.) Moreover, the breadth of...

ECB Meeting Recap: A Historic Rate Hike

As widely expected, today the European Central Bank (ECB) raised its main refinancing rate by 75 basis points (0.75%) to 1.25% and signaled additional rate hikes in coming months may be warranted. Markets are currently pricing in an...

Scary September Seasonals

For investors September is often a month to remember but for the wrong reasons. In fact, as shown in the LPL Chart of the Day, September has historically been one of the weakest months of the year for stocks.View enlarged chart...

Life Insurance for the Self-Employed

If you're like most people, you bought life insurance to provide for your loved ones in the event of your death. But because you're self-employed, you may have an even greater need for life insurance: You'll want to protect your family...

How Much Life Insurance Do You Need?

Your life insurance needs change as your life changes. When you are young, you may not have a need for life insurance. However, as you take on more responsibility and your family grows, your life insurance needs increase. Your needs...

Resources for Women-Owned Small Businesses

Small businesses face many problems related to their size, capital, and capability, and for women-owned small businesses, the challenge is sometimes even greater. The good news is there are many professional organizations out there...

Business Forum: Keeping Your Business High and Dry

Most businesses thrive on the ingenuity and dynamism of a few key people. In order to retain their best employees, business owners often devise attractive benefit packages that make it harder for the competition to lure away key...

How to Think about Inflation

Real Spending Grew in JulyReal personal spending rose 0.2% in July, a positive indicator for Q3 economic growth. However, consumers need to see a higher growth rate in personal incomes for the real economy to grow in Q3. Personal...

Women, Wealth, and Legacy Planning

Women play a central role in establishing and preserving family wealth -- whether nurturing the values of children, fulfilling charitable goals, or making investment decisions that affect the financial security of themselves or their...

Top Ten Housing Districts

Existing home sales in July fell over 20% from a year ago to an annualized rate of 4.81 million. Outside of the onset of the pandemic, the July sales rate was the lowest since late 2015 when the real estate market was recovering from...

5 Common Financial Planning Challenges of Nonprofit Organizations

Many nonprofit organizations set out to help others. They provide services, guidance, support, or other resources to a specific group or cause. Yet, to do the work they do, they often need financial strength. Nonprofit organizations...

The Bulls Are Back In Town?

The latest weekly data from the American Association of Individual Investors (AAII) showed a continued increase in the percentage of individual investors who are bullish about short-term market expectations (32.2%), and a continued...

Celebrate National Black Business Month Throughout August and Every Day

August is National Black Business Month, a time to celebrate black-owned businesses throughout the country. This celebration is a time to support black-owned business and organizations to promote economic freedom and entrepreneurship...

English Premier League Soccer Kickoff: Do Stocks Cheer Red Or Blue?

The most watched, and arguably the most exciting, soccer league in the world kicked off this weekend across the pond: the English Premier League (EPL). It’s set to be an enthralling season for the many EPL fans around the world...

Big Week for Market Watchers

Last week was epic for market-watchers. A Federal Reserve (Fed) rate hike, a much-anticipated gross domestic product (GDP) report, and the busiest week of earnings season got most of the headlines. There was even a surprise out of...

Market Strength Continues Amid Favorable Earnings

Index PerformanceView enlarged chart.U.S. and International EquitiesU.S. Markets Finish HigherThe major U.S. market indexes finished higher this week as growth and value names witnessed solid gains. The latest batch of second quarter...

Tips to Make Sure Part-Time Employees Stay

With over 11 million open jobs, businesses must turn to part-time help There are many reasons why your company may employ part-time workers, such as meeting seasonal workflow demands or retaining employees who no longer work full-time....

A Surprisingly Good Sign for Housing

From Heavy Highway Congestion to Eerily Empty RoadwaysNot to play up too much on the data from the National Association of Home Builders (NAHB) but the NAHB gives insights on the traffic of prospective buyers, a leading indicator of...

6 Tips for Small Business Owners to Promote Workplace Wellness

Work is stressful at times, and anxiety and stress among your employees may lead to performance issues and an overall lower productivity rate. By promoting wellness in the workplace, you may reduce employee burnout and make the work...

Are Supply Constraints Becoming Less of an Influence?

Supply-Driven Contributions to InflationYou have heard it here many times that the current inflationary environment has been irritated by supply-related problems with ports, international manufacturing shutdowns, and global shipping as...

June Market Insights – Markets Struggle As the Bear Growls

Index PerformanceView enlarged chart.U.S. and International Equities LowerThe major market indexes finished the month in the red as sticky inflation conditions weighed on last month’s market returns as the Federal Reserve (Fed)...

LPL Financial Research Midyear Outlook 2022: Navigating Turbulence

Markets rarely give us clear skies, and there are always threats to watch for on the horizon, but the right preparation, context, and support can help us navigate anything that may lie ahead. So far, this year hasn’t seen a...

Looking Forward

As the calendar has turned to July, investors would certainly like to forget the first six months of 2022. However, the Fourth of July Independence Day holiday does bring with it reason for celebration. Not only is it the 246th...

Is the U.S. Treasury Market Showing Signs of Cracking?

The U.S. Treasury market is arguably the most important market in the world. Not only does the market provide the financing of the federal government, it also provides a safe and liquid asset to support the flow of capital and credit...

The Importance of Reassessing Insurance Coverage for Small-Business Owners

Insurance is crucial for any small business. Small-business owners may find themselves in a difficult situation without proper coverage if they suffer building damage or face a lawsuit. While obtaining adequate insurance for your...

Was that the Bear Market Low?

With the S&P 500 moving into a bear market and the first half of the year since shaping up as one of the worst ever, many investors are wondering if we have yet seen the bear market low. We first asked, “Was that the...

6 Savvy Ways Small Businesses May Save Money This Summer

Whether your business tends to slow down or speed up in the summer months, there are a few things small-business owners may consider to cut expenses as the temperature rises. Here are six savvy ways for small businesses to save money...

Higher Rates Break Homebuilder Stocks

Undoubtedly the most important story of the past week is the historic move in interest rates. While this is a trend that has been firmly in place for months, it has accelerated even more following last Friday’s higher than...

The History, Significance, and Celebration of Juneteenth

The Juneteeth holiday marks the end of slavery in the United States and is one of the oldest African American holidays. It is the date that troops arrived in Galveston, Texas, after the Civil War, to enforce the Emancipation...

6 Tips for Small Business Owners to Promote Workplace Wellness

Work is stressful at times, and anxiety and stress among your employees may lead to performance issues and an overall lower productivity rate. By promoting wellness in the workplace, you may reduce employee burnout and make the work...

A Bear Market is Officially Here

A bear market is officially here thanks largely to stubbornly high inflation. For many of us, it has probably felt like a bear market for a while now, but the S&P 500 Index didn’t close more than 20% below its January 3 record...

Inflation at 41 Years Highs but There Is Some Good News

Headline Inflation Jumps, Core Inflation CoolsHeadline inflation in May rose 8.6% from a year ago, accelerating from April’s 8.3% growth rate. The Consumer Price Index (CPI) rose to the highest year-over-year increase since...

Financial Challenges and Resources for the LGBTQ+ Community

Major strides in LGBTQ+ equality have happened over the last decade. Most notably was the Supreme Court's 2015 decision to recognize same-sex marriage in Obergefell v. Hodge. Even so, members of the LGBTQ+ community tend to experience...

Fed Fears The Tight Job Market

Labor Markets Are Tight With Little Signs of LooseningEmployment in May grew by 390,000, driven by strong gains in leisure and hospitality, professional and business services, and transportation and warehousing. Job growth does not...

Bull Market Hangs by a Thread

The bull market that began in March of 2020 came dangerously close to an end. From March 23, 2020 through January 3, 2022, the S&P 500 Index gained 114% (excluding dividends). From that January 3 closing high through the recent low on...

Will There Be A June Swoon? Maybe, But Maybe Not

After a late month rally, we can say goodbye to the month of May, which now opens the door to June. Here’s the bad news, June is historically a weak month and it is actually the worst month of the year during a midterm year, down...

Why Employee Benefit Plans Make Sense

What Happens After A Bear Market Starts? Four Things To Know

Properly Insuring Your Business

Five Things You Should Know About the Traditional 60/40 Portfolio

Defined Benefit Plans: An Attractive Option for Small Businesses

Volatility Continues

Subliminal Messages in the Jobs Report

April Showers Bring May Flowers

6 Charts Focused on the Long Term

An Attractive Entry Point

Reducing Employee Stress Levels Can Help Improve the Bottom Line

Three Reasons Inflation Could Be Near A Peak

Sustainability For Small Businesses

Potential Sector Winners and Losers This Earnings Season

How Workplace Diversity Can Improve Your Business

Will Rising Mortgage Rates Squash the Housing Market?

A Ways to Go

April 1st employment report was no joke: the labor market is tightening

Higher Frequency Data Point to Slower Growth

Women's History Month: 4 Female Financial Pioneers

Three Things That Happened Last Week That Have Bulls Smiling

Keep Your Desk Clean with These Tips

Gas Drives Headline Inflation To 40-Year High: Are We Near The Peak Yet?

Job Gains Surprise to the Upside But Fed Will Still Likely Hike by 25 Basis Points Next Meeting

Why Employee Benefit Plans Make Sense

Navigating Geopolitical Tensions

What Is the VIX Index And How Has It Responded To Russia-Ukraine Conflict?

Munis Have Held Up (Relatively) Well in Periods of Rising Rates

Support These Black-Owned Home-Based Businesses

What’s the Technical Setup for the S&P 500?

The Origins and Significance of Black History Month

Will the Year of the Tiger Make the Bulls Smile?

Stocks' Road Ahead

GDP Gets a Big Boost from Inventories

What Should Small Business Owners Know About Data Privacy Obligations?

Down Week Puts U.S. Stocks Near Correction Territory

Three Main Benefits of Being a Mentor

Corporate Credit Markets are Healthy but Remain Expensive

The Importance of Setting Micro Goals in the Workplace

Markets Begin Year On A Weak Note

New Beginnings in 2022

Markets End The Year On A Strong Note

3 Things You Might Not Know About Charitable Giving

Tax Planning for the Self-Employed

Designing a Benefit Package for Your Small Business

Sector Playbook For Fed Rate Hikes Favors Value

Key Employees: Protecting Your Most Valuable Assets

Suppose you arrive at your company one morning and discover that a key employee died unexpectedly the night before. Have you ever considered how such a turn of events may affect your company? Along with losing a valued member of your...

Peak Inflation: Are We There Yet?

LPL Financial Research Outlook 2022: Passing the Baton

Job Growth Came Up Short in November

Holiday Resilience

We hope everyone enjoyed the Thanksgiving holiday with family and friends. While life has been challenging during the pandemic, we have a lot to be thankful for. At this time, we are especially grateful for COVID-19 vaccines and...

How Have Stocks Done Under Jerome Powell?

The big news this week was Jerome Powell will remain in charge of the Federal Reserve (Fed) for four more years, so we wanted to do a quick blog that looked at how stocks have done while he has been the Fed Chairman. “There are...

Tech is Leading Again

The S&P 500 Information Technology Sector has gained 27% in the past six months, outperforming the broader S&P 500 by more than 10%. But could its run of leadership just be getting started? As shown in the LPL Chart of the Day, the...

Carving Out Time to Support Small Business Saturday

American Express created Small Business Saturday in 2010 to provide small businesses with a holiday season boost on the heels of Black Friday. The day comes after one of the biggest shopping sales events and serves as a reminder to...

Reasons To Be Thankful

As we reach the home stretch of 2021, there is a lot to be thankful for. Stocks are having an amazing year, the economy is improving, and COVID-19 trends are going the right direction. Let’s look at some reasons to be thankful....

Entrepreneurs Aren’t Born, They’re Made

Who are entrepreneurs? Sometimes they are the people who leave the corporate world to pursue their own dreams. In many cases, they may be individuals who have found themselves dislocated or “downsized” from a previous job....

Employee Fraud: Costly Problem, Low Cost Solutions

Is your company susceptible to employee fraud? Small-to-mid-sized businesses may be especially vulnerable because they tend to place more trust in employees who have access to company assets, and they generally have fewer financial and...

Job Growth Bounces Back in October

The October payroll report more than delivered on expectations for a bounce back from the soft September report. The U.S. Bureau of Labor Statistics released its October employment report this morning, revealing that the domestic...

Many Reasons to be Thankful

The past year and a half have tested all of us, but overall, the economy continues to strengthen, COVID-19 trends are greatly improving, and this still relatively young bull market is alive and well. As the leaves turn colors and begin...

October Market Insights – The October Rebound

Index Performance View enlarged chart. U.S. and International Equities Stocks erased September losses with solid gains in October for the broad market averages. The S&P 500 returned almost 7% for the month, while the Dow Industrials...

Leading Indicators Show Tempered Optimism for Economy

On Thursday, October 21, the Conference Board released its September 2021 report detailing the latest reading for the Leading Economic Index (LEI), a composite of ten data series that tend to lead changes in economic activity. Many...

A Helpful Overview Of All Your Digital Property and Digital Assets

Digital property (or digital assets) can be understood as any information about you or created by you that exists in digital form, either online or on an electronic storage device, including the information necessary to access the...

Advantages, Challenges, and Opportunities for Businesswomen Today

Being a woman in business today comes with many obstacles, but it may also bring some unique advantages and opportunities. By navigating challenges and taking advantage of opportunities that come their way, women can go further in...

Solid Retail Sales in September

The U.S. Census Bureau reported overall retail sales grew 0.7% month over month in September vs. forecasts for a 0.2% decline, while retail sales excluding autos and gas also saw solid gains, rising 0.7% month over month vs. estimates...

Third Quarter Earnings Season Preview

We have used most of the superlatives we know to describe corporate America’s stunning performances over the past two earnings seasons. Despite lofty expectations, results exceeded estimates by huge margins. We expect solid...

Five Tips to Help You Organize Your Medical Records

If your medical records are scattered across a mishmash of different providers, cities, or even states, you may have trouble creating a comprehensive medical history when you need one. What steps can you take now to organize your...

Change May Bring Opportunities

One constant in life is change. During the past year and a half, we have experienced more change than any of us bargained for. Change is disruptive—but also brings opportunities. For investors right now, there is no shortage of...

September Market Insights – The September Selloff

Index Performance View enlarged chart. U.S. and International Equities September has been the worst performing month over the past 10 and 20 years. Looking at the prior year, the S&P 500 pulled back over 9% from September 2nd to...

Leading Indicators Show Optimism For Domestic Economy

On Thursday, September 23, the Conference Board released its August 2021 report detailing the latest reading for the Leading Economic Index (LEI), a composite of ten data series that tend to lead changes in economic activity. Many...

Revisiting Our 10-Year Treasury Yield Forecast

Until recently, we expected the 10-year Treasury yield to end the year between 1.75% and 2.0%. Now, however, there are two key elements suggesting we are unlikely to see significantly higher interest rates by year end: The Delta...

Main Street Sentiment Remains Strong Despite Risks from Speedy Recovery

According to LPL Research’s analysis of the Federal Reserve’s (Fed) recently released Beige Book, business sentiment on Main Street has declined in recent months as the economy navigates the latest wave of COVID-19, but...

Global Monetary Policy and What Likely Comes Next

The Covid-19 pandemic was an unprecedented shock to a large majority of global economies. But the economic damage was met with an extraordinary global monetary response with the Federal Reserve (Fed), European Central Bank (ECB), the...

Fall Into a Healthy Routine

Fall is in full swing, and for most families, so is a return to the school year routine. But for some kids, adjusting back to this schedule can be stressful—and can take a little longer than you’d like to find balance. But...

American Business Women's Day

September 22nd is American Business Women's Day, and it may be the perfect day to celebrate women who have surpassed the glass ceiling and gone on to be leaders and inspirations for businesswomen everywhere. In honor of American...

Digital Technologies Linked To Better Company Performance

Companies that extensively employ digital technologies perform better and are more efficient than companies that have not fully taken advantage of those technologies, according to the findings of a survey of senior information...

Some Key Uses of Life Insurance

Have you ever thought about the important role life insurance can play in helping you manage a variety of important financial objectives? Let’s look at some “slice of life” hypothetical examples and you’ll see...

The Bull Market Continues

The bull market continues, with the S&P 500 Index now up seven months in a row. Stocks have impressively gained 20% year-to-date, with the S&P 500 making 53 new all-time highs before the end of August—another new record. All of...

How is Delta Affecting Consumer Behavior?

How is the recent increase in COVID-19 cases in the United States linked to the spread of the Delta variant affecting the U.S. consumer’s behavior? We look at some consumer confidence focused high-frequency data for clues on how...

Jackson Hole Economic Symposium Preview

Since 1978, the Federal Reserve Bank of Kansas City has played host to central bankers, policymakers, academics and economists from around the world at its annual economic policy symposium in Jackson Hole, Wyoming, which is slated to...

How Are Workers Preparing for Retirement?

In general, workers seem to begin preparing for retirement almost as soon as they get their first job. However, according to the 2021 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), retirement...

A Closer Look At The High Yield Muni Market

As mentioned in the most recent Muni Market Monitor, high yield muni funds have accumulated $24 million of net inflows year to date, representing ~20% of total inflows to the total municipal category. With the prospects of higher...

What Can A Financial Professional Do for Non-Profits?

As of 2017, about two-thirds of all nonprofit organizations in the U.S. had annual budgets of less than $1 million.[1] For these non-profit organizations where every penny has a purpose, having the services of a financial professional...

Ways to Support Black Business

As the call continues to come for following through on support of minority-owned businesses,[1] many are wondering how they may lend their support to black businesses. Whether through direct investment or community support, there are...

Leadership Changes Coming to the Federal Reserve?

The Chairperson of the Federal Reserve (Fed) is appointed by the President of the United States and serves a four-year term. The current Chairperson, Jerome Powell, has held that position since 2018 so his initial term is ending early...

Six Months and Counting

Six months and counting. That is the current monthly winning streak for the S&P 500 Index. To take that a step further, this key equity benchmark has posted gains in 13 of the last 16 months—dating back to the March 2020 low....

July Market Insights – Sixth Straight Monthly Gain for the S&P 500, Led by Growth

Index Performance View enlarged chart. U.S. and international equities In July, the U.S. major market indexes finished higher while international equities, as represented by the developed international markets (MSCI EAFE), and the...

Changes to Medicare in 2021: What Recipients Should Know

For many people, turning 65 provides one of the keys to retirement: access to affordable healthcare. Whether you're enrolling in the Medicare program for the first time or have been a Medicare enrollee for years, it's important to stay...

Federal Reserve Meeting Preview

The Federal Reserve (Fed) meets this week to discuss its ongoing support for the U.S. economy. During its regularly scheduled two-day meeting, the nineteen-member committee is expected to discuss if and when the Fed should start to...

What is Hire a Veteran Day? And Why Is it Important?

The month of July has always held special meaning to veterans. The month is marked by the Independence Day of the country, so it seems fitting that it would be a good month to honor veterans who ensure the freedom of its citizens.[1]...

Earnings Season Off to a Great Start

Top Story Earnings season off to a great start Beat rates have been outstanding so far with 85% and 90% of S&P 500 companies beating earnings and revenue targets. Second quarter earnings growth is tracking to a nearly 70%...

LPL Research Releases Midyear Outlook 2021: Picking Up Speed

LPL Research is proud to announce the release of Midyear Outlook 2021: Picking Up Speed. While the speed can be exhilarating as economic growth accelerates, it can also be dangerous. Our updated outlook is designed to help you navigate...

Midyear Outlook 2021: Picking Up Speed

LPL Research Midyear Outlook 2021: Picking Up Speed is designed to help you navigate the risks and opportunities over the rest of 2021 and beyond. While the speed can be exhilarating as economic growth accelerates, it can also be...

Rethinking Social Wellness for Your Employees

Corporate wellness programs have been key tools in improving productivity, employee retention, and creating a more desirable corporate culture. While many companies have put a strong focus on physical wellness plans, many are just...

Picking Up Speed

In the first half of 2021, the U.S. economy powered forward faster than nearly anyone had expected. Speed can be exhilarating, but it can also be dangerous. In our view, the overall economic picture remains sound and will likely...

S&P 500 Index Streaking

Top Story Streaking. Stocks have been extremely strong recently. Here are some eye-opening stats. The S&P 500 Index is up seven days in a row for the first time since August 2020. It hasn’t been up eight in a row since April 2019...

How Small Businesses Can Stay Competitive

Launching a small business can be an all-consuming prospect. Even after you start to feel as though you have gotten into a groove you could find yourself facing unforeseen challenges—from a new competitor to supply chain issues....

Corporate Credit Markets Are Boring And Why That’s Good For Equity Investors

While most of the focus lately has been on the volatility in the Treasury markets, the corporate credit markets continue to tell an encouraging story about the economic recovery. The traditional U.S. corporate credit bond market...

Connecting the Dots on the Recent Bond Market Price Action

The “dot plots” are slowly becoming the new phrase of the year after the July 16 Federal Reserve (Fed) meeting. As a reminder, the dot plots represent the expected path of short-term interest rates by Fed members. Each dot...

Tempering Tech

As investors we fight against behavioral biases in every investment decision we make. Our Director of Research Marc Zabicki talked recently about some of these biases in this video. We become attached to our ideas and when we think...

Munis Are Expensive but Technicals Remain Favorable

While many of the taxable markets have generated negative returns this year, both the high quality and high yield municipal markets have generated positive returns (no guarantees that will continue, of course). State and local...

Small Business and Insurance: What Do You Really Need?

Insuring your business against various forms of financial loss is a common small business strategy. While you have much to attend to with the day-to-day needs of your small business, insurance considerations are equally as important....

Financial Insights for the LGBTQ+ Community

Retirement isn’t easy for most couples, and it’s even harder for lesbian, gay, bisexual and transgender people. A modest amount of planning can go a long way to providing the financial support you need. Many LGBTQ seniors...

Helping Young Adults Understand Insurance

Young adults starting out in life, especially newlyweds, need insurance. But what kind? As a start, a good term life policy likely is a smart move. Other types of insurance may not be. And as they age, what other varieties of coverage...

Gearing Up For Summer

As we move into June, a path to normalcy is coming quickly with stadiums allowing full capacity, restaurants filling up, and summer vacations in full swing. Meanwhile, the U.S. economy continues to recover remarkably quickly and the...

May Market Insights – Commodities Extend Gains in May

Index Performance View enlarged chart. U.S. and international equities The month of May proved to be mixed for the U.S. major market indexes. Last month’s top performer, the Nasdaq composite, was May’s laggard....

The Relationship Between Treasury Yields and Mortgage Rates

Mortgage rates are still around all-time lows but they may be headed higher. The 30-year national average mortgage rate hit an all-time low of 2.82% back in February, but with the U.S. economic recovery in full swing, mortgage rates...

Applying for Small Business Grants

Oh, the things you could do with free funding for your small business! And thousands of those opportunities are out there1 – like fish in the sea. Landing one of those fish requires dedication, preparation, and hard work, but...

5 Investment Considerations for Small Business Owners

If you're a small business owner, many of the best practices employed by individual investors are also available to you (of course!), but you also have some additional options and factors to weigh while creating your investment plans....

What Is “Tapering” and Why Is It Important?

After the April consumer price index (CPI) release that surprised to the upside, indicating consumer prices in some areas of the economy are increasing at a faster pace than many expected, the discussion has shifted to the need for the...

Measuring Inflation and the Fed’s Reaction to Higher Prices

Inflation is one of the primary risks to bondholders. Rising consumer prices erodes the “real” value of principal and interest payments making them worth less. However, the Federal Reserve’s (Fed) reaction to...

What Should Federal Employees Know About FEGLI?

Thinking about your own mortality is rarely pleasant. But for those with families or other dependents, the prospect of dying unexpectedly—and leaving financial burdens for your loved ones in the process—can be even more...

Out of the Shadows

As the calendar has turned to May, the popular “Sell in May and Go Away” stock market cliché is getting a lot of airtime. This is the idea that the stock market tends to be weakest between May and October (and...

April Market Insights – Economic Revival Signs Are At Hand

Index Performance View enlarged chart. U.S. and International Equities This month provided another set of positive results for the U.S. major market indexes. The top performer was the Nasdaq, rebounding from last month’s lagging...

A Quick Look at Life Insurance Needs

Have you ever wondered how much life insurance is “enough”? One general rule of thumb says that you should buy an amount equal to five to seven times your annual income. Sure, it may be a reasonable guideline, but this...

End of Recession Call May Come Soon

Incredibly, the COVID recession may have ended a year ago, but we still don’t have call from the National Bureau of Economic Research (NBER). That may change when the first estimate of Q1 2021 gross domestic product (GDP) growth...

Department of Labor Issues Final Rule for Financial Factors in Selecting Investments

Retirement plan sponsors, trustees, plan administrators, and members of plans’ investment committees are held to a fiduciary standard under the Employee Retirement Income Security Act of 1974 (ERISA.) This standard requires them...

Valuations Matter in the Bond Market Too

“Price is what you pay; value is what you get.” – Legendary value investor Ben Graham. Valuations matter—at least in the long run. We believe it to be true in the equity markets and in the fixed income markets...

Quarterly Market Insights – Economic Recovery, Redux

Index Performance View enlarged chart. U.S. and International Equities This quarter provided positive results for all major market indexes. The top performer and standout was the US small cap Russell 2000, returning over 12% for the...

Traditional IRAs versus Roth IRAs

Understanding the contribution, age, and income rules in 2021 Currently, there are two popular Individual Retirement Accounts (IRAs) vying for your attention: the traditional IRA and the Roth IRA. While both are long-term savings...

Revisiting Our Treasury Yield Forecast

Coming into this year, we expected longer-maturity U.S. Treasury yields to rise, consistent with improving economic growth dynamics. That is indeed what we have seen, with the yield on the 10-year Treasury higher by 80 basis points (0...

Spring Into A Positive Outlook

“The real key to making money in stocks is not to get scared out of them.” Peter LynchThey say April showers bring May flowers. Well, after a lot of showers and storms over the past year, flowers are starting to bloom and things are...

Stocks Love April

“History doesn’t repeat itself, but it often rhymes.” Mark Twain What more can we say other than few months have been kinder to stocks lately than the month of April. In fact, it was last year that saw the S&P 500...

Corporate Credit Markets Have Sold Off This Year. A Harbinger of Things to Come?

While most market participants have been (rightly) focusing on the sell-off in the Treasury markets this year, U.S. corporate credit markets have sold off as well. Corporate credit markets, as defined by the Bloomberg Barclays U.S....

How Can You Smooth the Intergenerational Transfer of a Family Business?

If you own a business, you may have spent years dreaming of passing along the business to your children, nieces and nephews, or other family members after you retire. However, transferring a family business—and its ability to...

March Madness—Stock Market Edition

March Madness: Stock Market Edition LPL Research share their “Final Four Factors” for the stock market in 2021 in this week’s Weekly Market Commentary, available at 1 p.m. ET. Daily Insights U.S. stocks open little...

IRA Beneficiary Rules Directly From the IRS

IRA Beneficiary Rules Directly From the IRS Know what to do if you inherit an IRA from a spouse or someone else As we get older, it is likely that we might inherit an IRA from mom or dad – or we need to counsel mom or dad as they...

Rising Interest Rates Are A Global Phenomenon

Today is the one-year anniversary of the low in the 10-year Treasury yield. While we’ve discussed the sharp rise in U.S. Treasury yields that have occurred this year, rising rates have been a global phenomenon. Similar to the...

Sick and Family Leave for the Self-Employed

The Bureau of Labor Statistics counts self-employment in different ways, but estimates that there are close to 10 million, with projections that this number will grow by 8% each year for the foreseeable future. And while much of the...

The Return of Normal is Approaching

It’s now been over a year since COVID-19 first hit American shores. While the pandemic has affected everyone to varying degrees, we can all agree that everyone’s life is different today than it was a year ago. It’s...

Energy and Financials Fuel February’s Markets

Index Performance View enlarged chart. US and International Equities This month provided positive results for the major market indexes. The top performer was the Russell 2000 small cap index, returning over 6% for the month. Small caps...

Recognizing and Avoiding Online Scams

According to the Identity Theft Resource Center, the number of U.S. data breaches hit a new high in 2017. Nearly 20% of breaches included credit and debit card information, a nearly 6% increase from the prior year. The actual number of...

Treasury Yields Are Rising. Now What?

Treasury yields started moving sharply higher this past month (remember that as yields go up, prices go down). And while the upward march began in earnest last August when the 10-Year Treasury yield bottomed at an all-time low rate of...

Helping to Ensure Your Company-Sponsored Retirement Plan Complies with 2021 Plan Limits

The beginning of the year is often a busy time for retirement plan sponsors, especially in smaller organizations where the company’s retirement plan committee members are tasked with sales and operational matters which may seem...

Got Yield? Hold the Rate Risk, Please

In LPL Research’s Weekly Market Commentary this week, we looked at some stock and bond options that may be attractive income-producing ideas for suitable income-oriented investors. On the bond side, many income-oriented investors...

Inflation Expectations Highest Since 2014

The 10-year breakeven inflation rate, a market-based measure of inflation expectations, hit its highest level last Friday, February 5, since 2014. Still, at 2.21% expected annual inflation over the next 10 years, it remains a...

Benefits of Incorporating Lifetime Income Strategies in Your Company’s Retirement Plan

Lifetime income (LTI) strategies, such as target income payout funds or annuities within company-sponsored retirement plans, are designed to help investors plan for and manage their accumulated wealth after retirement. However, these...

Stay the Course

“In the short-term, the market is a popularity contest. In the long-term, the market is a weighing machine.” Warren Buffett 2021 is under way, as our nation and the rest of the world look to begin to put the global pandemic...

As Goes January, So Goes The Year

Stocks got off to a nice start in 2021, until the late January selloff, as everyone got GameStop fever. Should bulls worry about what a down January might mean for the rest of 2021? There’s an old adage on Wall Street that...

Interest Rate Reversals Revisited

In LPL Research Outlook 2021: Powering Forward, we noted that large interest rate declines historically have been followed by reversals. With the 10-year Treasury yield continuing to climb, now’s a good time for an update. As...

Tax Identity Theft Awareness - Protecting Yourself from Tax Identity Theft

Tax identity theft is when someone steals your Social Security Number, files a tax return with your number, and directs a refund to their own bank account. In other cases, this type of identity theft may involve a scam artist calling...

Credit Spreads Limit Bond Performance Outlook

Investment-grade credit spreads, the extra yield you get from investment-grade corporate bonds compared to similarly dated US Treasuries, have already tightened to a level you usually only see during the middle of the economic...

4 Tips to Successful Networking

Networking may help you find opportunities that you may not be able to find on your own. It is important during a job search and during your career, since it may help connect you with future employment, customers, or vendors. Even one...

Treasuries Hit Key Levels

Treasury yields hit two key levels the first week of 2021. As shown in the LPL Chart of the Day, the 10-year Treasury yield moved above 1% for the first time since March 2020, and the 10-year breakeven inflation rate, a measure of...

Deferred Comp Plans: Rewarding Talent Today

A flexible method of providing additional compensation to your key people It’s hard for small businesses to stay competitive today. Competition for the best and the brightest employees, even in tough economies, is always...

2021 Brings a Fresh Start

Happy New Year! A new year offers a welcomed turn of the calendar and a fresh start. However, it’s difficult to put 2020 completely behind us just yet because the COVID-19 pandemic still presents a significant threat. Healthcare...

December Market Insights

Market Blog View enlarged table. US and International Equities The S&P 500 Index, Dow Jones Industrial, and Nasdaq Composite indexes, continued their November run in December. As noted last month, November was a record-breaking month...

Three Fed Takeaways from an Extraordinary Year

2020 was an extraordinary year for the Federal Reserve (Fed). The Fed responded swiftly and decisively to the rapidly accelerating financial and economic uncertainty brought on by efforts to contain the COVID-19 pandemic. The current...

Stimulus Bill May Help

Stimulus Bridges to Recovery Recent economic data shows evidence of slowing momentum in the US economy, but the new stimulus package could keep the recovery moving forward. This week’s Market Signals podcast reviews the stimulus...

IRS Makes Annual Inflation Adjustments for 2021

Adjustments for deductions, tax rate schedules and 60 other tax provisions The Internal Revenue Service announced annual inflation adjustments for the 2021 tax year for more than 60 tax provisions, including standard deductions and the...

4 More Years of Dollar Weakness?

Back in July, we wrote in our July 23 LPL Research blog that dollar weakness may continue, highlighting a short-term bearish technical case for the US dollar. Since then, the Bloomberg US Dollar Index and the US Dollar Index (DXY) are...

Three Main Benefits of Being a Mentor

Just about every success story involves the influence of one (or more) mentors along the way. Mentorship can provide benefits to both the mentor and mentee, helping build long-term relationships while developing leadership skills and...

Highlights of Outlook 2021: Powering Forward

2020 has been a tumultuous year, and as we near its close, we are pleased to present Outlook 2021: Powering Forward, which outlines our views on markets, the economy, and policy into 2021 and beyond. Policy changes should be relatively...

Outlook 2021: Powering Forward

2020 has been a tumultuous year, and as we near its close, we are pleased to present Outlook 2021: Powering Forward, which outlines our views on markets, the economy, and policy into 2021 and beyond. Click Here to Download the PDF

A Business Plan Can Be Your Guide to Growth

Whether you're a current business owner or a budding entrepreneur burning with the next great idea, one of the most important steps you can take on your road to success is creating a business plan. Why? A well-thought-out and...

Outlook for 2021

Dear Valued Investor: As 2020 comes to a close, we are already looking forward to a new year—and to a world very different from the one we’re leaving behind. Areas of the economy have been damaged and may never fully...

Corporate Bonds Tilting Toward Expensive

Not surprisingly, corporate credit spreads widened dramatically back in March 2020, making corporate bonds cheap relative to historical averages. (Credit spreads are the extra yield corporate bonds offer versus similarly dated...

Treasury Yields After Recessions End

It may be a year or more before the end of the recession is officially called, but gauging from the growth we’ve seen since April, it may already be over. If that’s true, it’s a good time to take a look at what US...

How Entrepreneurs Can Stay Nimble in the COVID Era

When one door closes, another opens—and entrepreneurs who keep this mantra in mind are more likely to remain on top once the world has moved beyond the novel COVID-19 pandemic. What can business owners and other entrepreneurs do...

2 Reasons Long-Term Rates Could Continue to Rise

Fixed income investors aren’t used to having to deal with the volatility of stocks, but in the year that is 2020, that is exactly what has happened thus far. Unfortunately, while we don’t see the volatility of Q1 2020...

Executive Compensation: Equity Compensation for Corporate Executives

When it comes to executive-level pay or compensation, financial compensation comes in a number of forms, including salary, bonuses, and other forms of compensation, such as equity compensation. This type of compensation is often used...

Investing for the Long Haul: 5 Tips for Millennials

As Millennials establish themselves in their careers and as adults, now is the time for these 20- and 30-year-olds to begin investing. Developing a lifelong process of saving and investing for the future is the key to this...

Earnings Rebound Picking up Speed

Third quarter earnings season has been outstanding relative to expectations by many measures. Some of the highlights: S&P 500 Index earnings are tracking to a 7.5% year-over-year decline, as shown in the LPL Chart of the Day, more than...

Election Clarity for the Markets

November 9, 2020 Dear Valued Investor: Former Vice President Joe Biden has been elected the 46th President of the United States, defeating President Donald Trump in a tight race and bringing an end to the highly contested 2020 election...

4 Reasons to Do Your Shopping on Small Business Saturday

When Thanksgiving rolls around, the holiday shopping season comes into full swing. While many people prepare their strategy for Black Friday shopping, a lot of them forget about the second shopping holiday that weekend: Small Business...

Election 2020 is Undecided

Dear Valued Investor: The American people have voted, casting a record number of ballots under extraordinary circumstances, which is a testament to the enduring resilience of our democracy. Determining the outcome of our elections is a...

The Best Day Of The Year Is This Week

Market Blog With the election only eight days away and earnings season in full swing, stocks have bucked the usual October weakness during election years so far in 2020 (Monday’s losses notwithstanding). The good news is this...

Treasury Return Expectations Historically Low

Market Blog The 10-year US Treasury yield, at 0.77% as of October 19, is still near historical lows set earlier this year. Historically, 10-year Treasury performance for the next 10 years has tended to track the Treasury yield at the...

Investing for the Long Haul: 5 Tips for Millennials

As Millennials establish themselves in their careers and as adults, now is the time for these 20- and 30-year-olds to begin investing. Developing a lifelong process of saving and investing for the future is the key to this...

Under-the-Radar Signal That Rates May Head Higher

Market Blog The 10-year Treasury yield has stayed in a narrow range since April 2020, helped by a supportive Federal Reserve and ongoing concerns about the COVID-19 pandemic. As shown in LPL’s Chart of the Day, the 10-year...

Fixed Income Excels in the Third Quarter

Market Blog The third quarter was characterized by the carry-over of economic momentum from the second quarter, as states continued to lift restrictions to reopen their economies. Perhaps it was no surprise that some of the hardest hit...

Signs of Strength in the Economy

Dear Valued Investor: Autumn has arrived, with students back in school, baseball playoffs beginning, and football in full swing. Life is trying to get back to as normal as possible despite the ongoing impact from COVID-19. While the...

How Corporate Bond Spreads Respond to Equity Market Volatility

An old Wall Street adage says bond markets are smarter than equity markets, so when stocks encounter volatility, investors often look to the bond market for clues about the potential severity of equity market weakness. The...

Designing a Benefit Package for Your Small Business

If you're a small business owner, you face many challenges in growing your company. One of them is recruiting and retaining the best talent for your needs. When your primary goals are managing costs and increasing revenue, how do you...

403(b) Plans and Saving for Retirement

In 1958, the Internal Revenue Service (IRS) created 403(b) plans to encourage employees of certain organizations to begin saving for retirement. In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the...

How Bonds May Perform When Rates and Stocks Fall

A few weeks ago we looked at how different bond sectors performed during rising rate periods during the last economic cycle (2009–2020). Today we look at falling rate periods—not the outcome we expect, but it can still be...

Central Banks Speak

The US Federal Reserve (Fed) and Bank of Japan (BoJ) both meet this week, while the European Central Bank (ECB) met last week. When central bankers talk— markets listen. “The global economy has been steadying faster than...

LPL Street View: The Recession Is Likely Over

Economic Blog In the recent LPL Market Street View video, LPL Financial’s Chief Market Strategist Ryan Detrick discusses why the recession is likely over, making it one of the shortest recessions ever. Some reasons discussed...

Celebrating Labor Day 2020

Give me work, ‘till my life shall end and life, ‘till my work is done The national holiday we celebrate on Monday, September 7th is a good time for reflection on why we work and what we derive from it. The answer should be...

Weekly Market Insight

Markets mostly higher. The S&P 500 Index and Nasdaq opened higher after a mixed close on Monday, with the Nasdaq making yet another new high. The S&P 500’s lower close broke a seven-day win streak and six consecutive all-time...

When Do Rates Start Rising After a Recession?

As the economy begins to recover, with the early stage more robust than expected, we increasingly get asked when interest rates will move meaningfully higher. As shown in the LPL Chart of the Day, historically rates don’t start...

Low Treasury Yields Present a Challenge as Inflation Expectations Rise

As the COVID-19-related economic weakness that characterized the first half of the year subsides, growth has begun to return as trillions in fiscal stimulus have helped to stabilize consumer spending. Against a backdrop of improving...

Preparing For Your Next 401(k) Open Enrollment

Open enrollment season is one of the shortest—in most cases, employees have only a few weeks to research their options and make a decision on things like their 401(k) contributions, health and dental insurance, disability...

Positive Territory

The battle versus COVID-19 continues. The spread in some of the recent hotspots like California and Florida is slowing, while states in the Northeast and Midwest are now experiencing increases in cases. According to the World Health...

The Worst Years for Treasuries Don’t Look Like This…Except One

Economic Blog The 10-year Treasury yield is historically low, so low that it could climb a full 1% before the end of the year and still be the lowest year-end yield on record, with room to spare. Historically low rates come with a...

Let’s Get Real About Yields

While the 10-year Treasury yield has traded in a narrow range since early April, the equivalent real yield, represented by the yield on 10-year Treasury inflation-protected securities (TIPS), has continued to fall and could go lower....

401k Planning: 5 Questions to Ask

When was the last time you took steps to optimize your 401k? If it's been a while, you're not alone. Research indicates that only one in three Americans utilize employer-sponsored 401k retirement accounts; even those who are...

In the Age of COVID-19, What Should Employers Know About Employee Leaves of Absence?

The novel coronavirus (COVID-19) crisis has shuttered businesses, schools, and care facilities across the country. This has left many employees scrambling to find childcare arrangements, set up a home office for teleworking, or arrange...

Real-Time Data Recovery Stalled Amid COVID-19 Resurgence

We check in again today on some of the real-time economic data that LPL Research is monitoring to provide insight into how the latest increase in COVID-19 cases and the rollback of certain reopening measures are affecting the state of...

Economically Sensitive Fixed Income Sectors Lead in Second Quarter

The Bloomberg Barclays US Aggregate Bond Index posted a solid total return of 2.9% in the second quarter of 2020, its eighth consecutive quarterly gain, and a relatively strong quarter for the broad investment-grade bond index...

Critical Business Strategies for Entrepreneurs Preparing for Retirement

When you work for an employer, saving for retirement can be as simple as signing up for a 401(k) plan and making regular contributions, but when you own your own business, preparing for retirement can be more challenging. While pouring...

Ten Things You Must Know About Medicare

Heading into your retirement years brings a slew of new topics to grapple with, and one of the most maddening may be Medicare. Figuring out when to enroll, what to enroll in and what coverage will be best for you can be daunting. To...

Mortgage Rates Fall to Record Low

Economic Blog Nearly four months ago, in late February, the 10-year Treasury yield broke to its lowest level ever, undercutting the record lows from 2016 of 1.32%. Over the following two weeks, as fears surrounding the COVID-19...

AN AUTOBIOGRAPHY BY WILLIAM L. BETHEL

Many requests have been made of me to write something of the story of my life. Until recently I have never given much consideration to these requests for the reason that I had never thought that I had done enough in the world to...

He's Just 93: Reverend William L. Bethel

Born a slave in the North Carolina and a soldier in the Union Army at 22, "after the Yankees came and got me," Rev. William L. Bethel, Oklahoma City, who has just celebrated his 93rd birthday is still hale and hearty and retains that...

What Happens After Historic Rate Declines?

The yield on the 10-year Treasury yield has been broadly declining since the early 1980s, when it peaked over 15%, but even over that long decline there have been intermittent periods of rising rates. In fact, after periods of...

It’s Official, We’re In A Recession

In probably one of the least surprising economic calls of all time, the Nation Bureau of Economic Research (NBER) officially declared an end to the longest expansion ever and the start of a new recession. As shown in the LPL Chart of...

Small Business and Insurance: What Do You Really Need?

Insuring your business against various forms of financial loss is a common small business strategy. While you have much to attend to with the day-to-day needs of your small business, insurance considerations are equally as important....

2020 In Charts

2020 is only five months old, but in many ways it is one of the most historic years we’ve ever seen. “2020 went from moving along nicely, to seeing the worst recession in a generation and the fastest bear market ever...

Better Times Are Coming

Dear Valued Investor: “Never confuse a single defeat with a final defeat.” — F. Scott Fitzgerald The economic struggles in our country are among the worst we’ve ever seen. In April, a record 20 million people...

Corporate Bond Spreads Decline as Fed Increases ETF Purchases

The Federal Reserve (Fed) increased its bond exchange-traded funds (ETF) purchases in the week ending May 20 (the most recent data available), adding another $1.5 billion in bond ETFs to its balance sheet, bringing the total holding...

Fed Says No to Negative Rates

There’re plenty of people who think negative interest rates are a good policy. But we don’t really think so at the Federal Reserve. And I think it’s an area of real uncertainty in the central banking world. -Fed...

Why Gold Will Continue To Shine

Gold has done quite well so far in 2020, up more than 12% year to date versus the S&P 500 Index which is down about 10%. We started to warm to the yellow metal late last year and continue to think it can serve as a potential hedge in...

Remembering the Flash Crash

One of the most historic market crashes ever took place 10 years ago today, with the Dow Jones Industrial Average Index plunging more than 1,000 points, or 9%, within minutes, only to regain most of the losses by the end of the day....

Happy Teacher's Appreciation Day to Teachers Navigating Their Calling Outside the Classroom

This year, Teacher's Appreciation Week runs from May 4 to May 8, but rather than being in the classroom, most teachers will be at home, navigating their calling outside the classroom. When the coronavirus hit the United States,...

How the CARES Act Can Help Businesses Survive the Shutdown

Many parts of the country are still under shelter-in-place orders, allowing only essential businesses like hospitals, grocery stores, and auto repair shops to continue serving customers. Businesses that have been closed to the public...

Silver Lining in Consumer Confidence Data

The Conference Board’s Consumer Confidence Index (CCI) for April came in 86.9, falling more than 30 points from the prior month. The monthly drop was the biggest for the index since 1973, reflecting the severity of the economic...

How We Respond Matters

Dear Valued Investor: “Life is 10% what happens to you and 90% how you respond to it.” — Lou Holtz, Hall of Fame football coach As the battle against the COVID-19 pandemic continues, how we respond to it will...

Small Business Owners Guide to the CARES Act

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the government has funded a number of initiatives to help small businesses. As you navigate this difficult time, you may want to look into the following...

Can Stocks Close Higher In 2020?

What a ride 2020 has been for investors. The fastest bear market ever, now one of the steepest recoveries ever. After being down more than 30% for the year on March 23, this recovery is extremely impressive. In fact, before yesterday,...

Big Annual Declines are Rare

Stocks have rallied nicely off the March 23 lows on the back of a bold policy response from the Federal Reserve (Fed) and lawmakers in Washington, DC, which was followed by signs that a peak in growth of COVID-19 cases may come soon....

7 Tips to Help You Stay Productive at Home

With the rapid spreading of COVID-19, and more and more people either on self-quarantine or practicing social distancing, many of us are working from home. While working from home definitely has its perks – no commute! –...

Our Response to COVID-19

We want to share information about the steps we’ve taken to minimize any potential impact to our clients as a result of the Coronavirus (COVID-19) situation and maximize our efforts to keep our team and clients safe. This event,...

Income Inequality and Its Impact on Women's Retirement

Here are the facts. Generally speaking, women earn less than men, live longer than men, and often take time out of the workforce to have children and/or to care for an aging parent or sick loved one. The potential consequence of these...

Small Business Insurance: What Do You Really Need?

Insuring your business against various forms of financial loss is a common small business strategy. While you have much to attend to with the day-to-day needs of your small business, insurance considerations are equally as important....

Low Valuations Imply Better Long-Term Performance

The dizzying volatility over the past few weeks has left all of our heads spinning as we wait for containment efforts in the United States and elsewhere to help slow new cases of COVID-19 (coronavirus). Public health is of course our...

First Emergency Rate Cut By the Fed Since 2008

In a move in which the timing was more compelling than the decision itself, the Federal Reserve (Fed) announced this morning that it unanimously decided to cut its policy rate by 50 basis points (0.5%) from the 1.5-1.75% range to the...

403(b) Plans and Saving for Retirement

In 1958, the Internal Revenue Service (IRS) created 403(b) plans to encourage employees of certain organizations to begin saving for retirement. In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the...

Compensation Strategies for Small Business Owners

Deciding how much to pay employees is an important part of your company’s competitive strategy. Paying workers too much may cut into profitability, but insufficient compensation can result in high turnover and poor morale....

Key Employees: Protecting Your Most Valuable Assets

Suppose you arrive at your company one morning and discover that a key employee died unexpectedly the night before. Have you ever considered how such a turn of events may affect your company? Along with losing a valued member of your...

A Letter to Clients

Dear Valued Investor: “The stock market takes an escalator up, and an elevator down,” is a classic Wall Street saying. The last week has sure felt like taking an express elevator down, as the end of February brought a...

A Letter to Clients

Dear Valued Investor: “The stock market takes an escalator up, and an elevator down,” is a classic Wall Street saying. The last week has sure felt like taking an express elevator down, as the end of February brought a...

A Letter to Clients: The Coronavirus

Dear Valued Investor: Monday was a tough day in the stock market, with the S&P 500 Index down more than 3% as the number of coronavirus cases reported outside of China jumped. Monday’s losses reversed all of this year’s...

DAILY INSIGHTS

Stock markets modestly lower after renewed coronavirus concern. Apple’s announcement that the coronavirus would impact sales had international markets striking a cautious tone overnight, with the technology sector getting much...

401k Planning: 5 Questions to Ask

When was the last time you took steps to optimize your 401k? If it's been a while, you're not alone. Research indicates that only one in three Americans utilize employer-sponsored 401k retirement accounts; even those who are...

Small Business and Insurance: What Do You Really Need?

Insuring your business against various forms of financial loss is a common small business strategy. While you have much to attend to with the day-to-day needs of your small business, insurance considerations are equally as important....

Yield Curve Back in the News

The financial media returned to a favorite topic in the last week, yield curve inversion, but we caution against getting caught up in the building frenzy. The Treasury yield curve inverts when short-term interest rates move above...

Understanding Medicare: Parts A, B, C, and D

Medicare contains many rules that beneficiaries and their caregivers are required to learn. Perhaps the best way to grasp the program's details is to review the major components of the Medicare program: Parts A, B, C, and D. Medicare...

Are Yields Near a Bottom?

Economic Blog The 10-year U.S. Treasury yield moved to within .05% of its recent low on Friday, January 31, approaching the 1.47% mark set back in August 2019. Prospects of stabilizing global growth and progress on trade encouraged...

10 Ways the SECURE Act will Impact Your Retirement Savings

With the decline of traditional pensions, most of us are now responsible for squirrelling away money for our own retirement. In today's do-it-yourself retirement savings world, we rely largely on 401(k) plans and IRAs. However, there...

Viral Outbreak Ends Period of Market Calm

Market Blog Fears that the deadly coronavirus would spread further around the globe intensified Monday and led to the biggest one-day drop in the S&P 500 Index since October 8, 2019. In fact, it was the first time the index moved 1%...

Retirement Plan Rollover Options for Non-Spouse Beneficiaries

If you participate in an employer-sponsored qualified retirement plan, such as a defined benefit plan, 401(k) plan, employee stock ownership plan (ESOP), 403(b) plan, or 457(b) plan, you may have chosen a beneficiary to receive your...

Recession Watch Update

ECONOMIC BLOG As the economic expansion caps its first decade, we thought it’d be a good time to check on LPL Research’s leading indicators in our Recession Watch Dashboard. As you can see in our latest update and in the...

How Well Do You Know Your 401(k)?

The old saying "knowledge is power" applies to many situations in life, including retirement planning. The more you know about the benefits your plan offers, the more likely you'll be to make the most of them and come out ahead...

Healthy But Manageable Consumer Inflation

Consumer inflationary pressures grew at a healthy, but manageable rate in December 2019. The core Consumer Price Index (CPI), which excludes food and energy, rose 2.3% year over year last month, around the fastest pace of the economic...

Developing a Successful Business Plan

A well-crafted business plan can be a blueprint for success. This multifaceted tool is as important to established business owners looking to grow their companies as it is to budding entrepreneurs. A business plan defines your business...

What Mideast Escalation Means for Markets

The U.S. airstrike that killed the top Iranian military commander last week was a major escalation in Mideast tensions. In fact, it would be difficult to overstate the geopolitical significance of this action. Iran likely will...

POP QUIZ!—TAX PLANNING BASICS

Q: What’s the difference between a tax credit and a tax deduction? A: A tax credit reduces your tax dollar for dollar—that is, a $1,000 tax credit actually saves you $1,000 in taxes. By comparison, a tax deduction reduces...

Is It Time For Santa?

Economic BlogDecember 17, 2019 December has been widely viewed as a strong month for stocks, with this year following suit so far. What many probably don’t realize, however, is the majority of the gains have taken place late in...

401(k) Decisions -- You Can Take It With You

If you are preparing to change jobs, do you know what your choices are for managing the money in your current employer's retirement plan? Although many people choose to take a cash distribution, there are other options that may benefit...

Four Fed Hikes, One Year Later

The Federal Reserve’s (Fed) final policy meeting of 2019 starts today and will conclude tomorrow with the release of the Fed’s policy statement, updated economic projections, and a press conference by Fed Chair Jerome...

Tax Benefits of Making a QCD

At the end of 2015, Congress permanently extended the rule allowing taxpayers to exclude from taxable income certain individual retirement account (IRA) distributions made directly to a qualified charity. Otherwise known as qualified...

Outlook 2020: Bringing Markets Into Focus

Hindsight is 20/20, but finding clarity in future uncertainty can be fuzzy. AT LPL RESEARCH, as we look forward to the year 2020 and a new decade, some key trends and market signals will be important to watch, including progress on U.S...

Small Caps Join the Party

It took nearly 15 months, but the Russell 2000 Index finally broke out to a new 52-week high. On November 25, the Russell 2000 gained an impressive 2.1% to close at its highest level since October 2018. Small caps have lagged their...

A Letter to Clients: November 2019

Dear Valued Investor: Turning the calendar from October to November brought more than trick-or-treaters, pumpkins, and leaves to rake. It also brought a wave of important economic updates that delivered more treats than tricks and...

Three Amazing Streaks

“We’re going streaking!” Frank The Tank in Old School As the bull market continues to make new highs, the past few weeks have seen some amazing market streaks. Here are three that have caught our attention. The S&P...

Putting The Bull In Perspective

The S&P 500 Index has closed higher five consecutive weeks, making six new all-time highs along the way. There now have been 19 new highs in 2019, tying the number we saw last year. There’s no doubt that this bull market has been...

Bulls Stay in Motion

“An object in motion tends to remain in motion along a straight line unless acted upon by an outside force.” Sir Isaac Newton What a year it has been for the bulls. The S&P 500 Index recently made four more new highs, and...

NFL, Fantasy Football, & Active Investing

Could you identify a Tom Brady-manager AND know when to trade him? What does fantasy football have to do with investing? It teaches you to avoid Nick Foles-like fund money managers, whose one-time Super Bowl achievements often decline...

When Do I Sign Up For Medicare?

Title: How -- and When -- Do I Sign Up for Medicare? Description: This article explains the rules regarding the timing of applying for Medicare. Body: In most instances, you become eligible for Medicare on the first day of the month...

Helpful Tax Tips Before Year End

Tax planning can be more advantageous when done during the year and well in advance of year’s end. Opportunities may exist for you to minimize tax liability, which could leave more income for you and/or your family. Generally,...

Buying Locally and Giving Locally

Maybe your charitable donations should stay in your zip code? For many of us, buying locally matters. We’ve all heard the term and seen the signs: Shop Locally. Eat Locally. But let’s extend that thought for a minute: do...

Will The Fed Go Three For Three?

The Federal Reserve Bank (Fed) is widely expected to cut interest rates on Wednesday, October 30, which would be the third cut this year after nine consecutive hikes. The current fed funds rate target is 1.75–2%, with a 25 basis...

Health Savings Accounts: Are They Just What the Doctor Ordered?

Are health insurance premiums taking too big of a bite out of your budget? Do you wish you had better control over how you spend your health-care dollars? If so, you may be interested in an alternative to traditional health insurance...

Another Brexit Delay Likely

The United Kingdom’s (U.K.) withdrawal from the European Union (E.U.), or Brexit, is stumbling along, and another delay looks increasingly likely. The U.K. Parliament’s “Super Saturday” voting session last...

Members of the Military: Planning for Retirement

Planning for retirement is an important and sometimes difficult endeavor. As a member of the military, you may have some special opportunities and challenges when preparing financially for retirement. Often, retiring from the military...

Light at the End of the Brexit Tunnel

The debate over the United Kingdom’s (U.K.) withdrawal from the European Union (EU), or Brexit, is reaching another milepost in what could be an action-packed week. Talks between the U.K. government and the EU have entered...

A Letter to Clients: October 2019

Dear Valued Investor: Summer has turned to fall, and there’s already a little chill in the air. Three-quarters of the year is behind us now, and both stock and bond markets have had a strong year so far, although we expect to see...

Can The Economy Predict The Next President?

“The economy, stupid” — Phrase campaign strategist James Carville used to help Bill Clinton get elected in 1992. As Carville noted ahead of the 1992 election, the recession in 1990 and 1991 was top of mind for many...

Brush Up on Your IRA Facts

If you are opening an (Individual Retirement Account) IRA for the first time or need a refresher course on the specifics of IRA ownership, here are some facts for your consideration. IRAs in America IRAs continue to play an...

U.S. Manufacturing Drops to 10-Year Low

U.S. manufacturing activity fell to a 10-year low, dragged down by a weakening global economy. The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) fell to 47.6 in September, the lowest level since...

What Is a 403(b) plan?

In 1958, the Internal Revenue Service (IRS) created 403(b) plans to encourage employees of certain organizations to begin saving for retirement. Organizations eligible for participation in these plans are those “organized and...

A Two-Week Rollercoaster in Yields

As shown in the LPL Chart of the Day, the 10-year Treasury yield jumped 34 basis points (0.34%) in the week ending September 13, then gave back half that gain in a 17 basis point (0.17%) slide last week. The benchmark yield...

Tax Planning for the Self-Employed

Self-employment is the opportunity to be your own boss, to come and go as you please, and oh yes, to establish a lifelong bond with your accountant. If you're self-employed, you'll need to pay your own FICA taxes and take charge of...

TRANSFERRING YOUR FAMILY BUSINESS

As a business owner, you're going to have to decide when will be the right time to step out of the family business and how you'll do it. There are many estate planning tools you can use to transfer your business. Selecting the right...

A New High in CPI Growth

Consumer inflation has accelerated recently, bucking disinflation and deflation concerns that had permeated financial markets earlier this year. In August, the core Consumer Price Index (CPI) increased at least 0.3% for a third...

403(b) Plans and Saving for Retirement

In 1958, the Internal Revenue Service (IRS) created 403(b) plans to encourage employees of certain organizations to begin saving for retirement. In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the...

A Business “Will” can Go a Long Way

A business will is far more than a legal document designed to transfer assets upon the death of an owner or partner. It is a comprehensive estate planning tool that can include everything from management plans, and other documents...

Do Major Hurricanes Impact Stocks?

First and foremost, our thoughts are with all of those that were impacted by Hurricane Dorian over the Labor Day holiday and all those that are still in its path. Many have asked us what stocks tend to do after a major hurricane hits...

Trade Uncertainty Still Weighing on Capital Investment

Business investment remains a critical component for this economic expansion. Capital expenditures (capex) drive productivity gains (more output per hour worked), which enables economic growth while keeping inflation contained. That...

Breaking Down China’s Slowdown

Trade tensions continue to weigh on China’s growth, creating added pressure to reach a trade deal with the United States. Economic reports released last week provided further confirmation that the trade war is continuing to...

Consumer Inflation Picks Up

Consumer inflation has surged back after a strong quarter of U.S. consumer demand. As shown in the LPL Chart of the Day, Consumer Inflation Picks Up in July, the core Consumer Price Index (CPI), which excludes food and energy prices,...

Is a Trade Deal Still Possible?

We’re a week into August, and trade tensions have been the biggest driver of U.S. stocks, as we predicted in our latest Weekly Market Commentary. Markets don’t like uncertainty, and we are getting a heavy dose of it now. On...

Here Comes August, Time to Buckle Up?

It has been a great year for stocks. As of July 30, 2019, the S&P 500 Index is up more than 20% so far in 2019. To put that in perspective, since WWII only seven years have been up more than 20% by the end of July, with 1997 being the...

Checking On The Calendar

“I’ve been on a calendar, but I’ve never been on time.” Marilyn Monroe We’ve pondered where the S&P 500 Index could go now that it’s near our fair-value target of 3,000. As we discussed in the latest...

The Dow’s Hot July

Blue chip stocks have been on a tear this month. The Dow Jones Industrial Average (Dow) has risen 2.8% in July, the best performer of the four benchmark stock indexes we track. As shown in the LPL Chart of the Day, The Dow’s Hot...

Are You Financially Fit?

If you don't have a financial plan, that question may be hard to answer. To achieve financial wellness, you need to define your goals and set a time frame for reaching them. The following steps can help you take control of your...

529 Plans vs. Other College Savings Options

529 plans can be a great way to save for college, but they're not the only way. When you're investing for a major goal like education, it makes sense to be familiar with all of your options. Mutual funds Mutual funds are an option to...

Balancing Act: Saving for Both Retirement and College

Linda and Peter are worried about their financial future. "We want our one-year-old son, Raymond, to go to college, but we're concerned that in 17 years, the cost might be more than we can afford," says Peter. "We also need to save for...

Let’s Talk About Pullbacks And Corrections

Let’s get one thing straight: Market pullbacks, corrections, and bear markets happen. Last year was a perfect example of this: The S&P 500 Index endured five separate 5% pullbacks throughout the year, and a nearly 20% bear market...

10-Year Treasury Yields Look Up

The 10-year Treasury yield has been flirting with dipping below 2% throughout the later half of June and into the start of July. As our LPL Chart of the Day, Will Trade Truce Help 2% 10-Year Treasury Yield Hold?, shows, the yield has...

Midyear Outlook 2019

We are pleased to announce the release of the LPL Research Midyear Outlook 2019: FUNDAMENTAL: How to Focus on What Really Matters in the Markets, with investment insights and market guidance through the end of 2019. LPL Research...

Can Stocks Really Gain 20% This Year?

U.S. stocks could have a big year if LPL Research’s forecasts prove correct. All year, we’ve maintain our fair value target on the S&P 500 Index of 3,000, implying that we expect this bull market and economic expansion to...

403(b) Plans and Saving for Retirement

In 1958, the Internal Revenue Service (IRS) created 403(b) plans to encourage employees of certain organizations to begin saving for retirement. In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the...

Your Vacation- An Invitation to Burglars

Returning to a burglarized home can be a horrible jolt after a relaxing vacation. Unfortunately, the truth is that an empty home is an easy target for burglars, and peak vacation times show the highest number of break-ins. However,...

Sentiment Stands Strong

Business confidence surged in May despite renewed uncertainty in the U.S.-China trade dispute. As shown in the LPL Chart of the Day, “Business Optimism Surges Despite Trade Uncertainty,” the National Federation of...

Congratulations, Graduates! What are your next steps, financially?

What recent graduates (and their parents) need to think about Spring is here, summer weather has begun (in many places), and graduation time has arrived. Across the country, students are finishing their high school, college, and even...

Stocks’ Losing Streak In Perspective

The S&P 500 Index has closed lower four consecutive weeks, its longest weekly losing streak since October 2014. The S&P 500 has closed down five weeks in a row only once since the bull market started in March 2009—a six-week...

Checking In On The Five Forecasters

With the bull market 10 years old and the economic cycle about to reach 10 years, the big question is how much longer can it go? To answer this question we will take a closer look at our Five Forecasters for late-cycle warnings....

Teaching Your College-Age Child about Money

When your child first started school, you doled out the change for milk and a snack on a daily basis. But now that your kindergartner has grown up, it's time for you to make sure that your child has enough financial knowledge to manage...

Another Reason For Bulls To Smile

The S&P 500 Index has officially gained each of the first four months of the year for the first time since 2013. This comes on the heels of the best first quarter since 1998. Six straight months in green has been the best monthly win...

Pay Yourself First

Each month you settle down to pay bills. You pay your mortgage lender. You pay the electric company. You pay the trash collector. But do you pay yourself? One of the most basic tenets of sound investing involves the simple habit of...

Pullbacks Happen

The recent bout of volatility has caught many investors off guard. However, we’ve been saying since late March that some type of normal correction could happen, and we’ve taken a more cautious stance. This was one of the...

8 Steps for Pre-Retirees to Pursue Retirement Income

Sometimes people get caught up in the numbers so much that they get why they're saving for retirement. At the beginning of your career, you may not have known what you wanted to do. Now that you've officially joined the ranks of...

I'm Changing Jobs. What Should I Do With the Money in My Plan?

Changing jobs is an important decision -- one that many of us are making more often. Once you've decided to switch jobs, your next move is to determine what to do with the money in your former employer's retirement plan. Four Common...

Retirement Plans for Small Businesses

As a business owner, you should carefully consider the advantages of establishing an employer-sponsored retirement plan. Generally, you're allowed a deduction for contributions you make to an employer-sponsored retirement plan. In...

Paying for Graduate School

Maybe you've decided that graduate school is the path to advancement in your current job or your ticket to a better career. Or maybe you just want to take a few classes to upgrade your skills. Either way, returning to school as an...

Distributions and Rollovers: What You Need to Know About Roth 401(k)s

The Roth 401(k) resembles the Roth IRA in that contributions are made with after-tax dollars and qualified withdrawals can be made tax free. But, as the name implies, it also is subject to many of the rules affecting traditional 401(k)...

Investing in Your Vacation

Why do most avoid this important investment? Why do so many of us not use our vacation days? Salespeople talk about “leaving money on the table.” Well, employees leave vacation on the table. And the cost to us is...

A LOOK AT WHOLE LIFE INSURANCE

Whole life insurance remains in force for your whole life, as long as you remain current with your premiums. In exchange for fixed premiums, the insurance company promises to pay a set benefit when the policyholder dies. Whole life...

Time to Sell in May?

One of the most popular investment axioms is about to take over the airwaves: “Sell in May and Go Away.” That’s because the upcoming six months(from May until the end of October) have historically been the weakest...

The Waiting Game for Record Highs

The wait is over. After more than seven months, the S&P 500 Index notched a fresh all-time closing high of 2,933.68 on April 23. To get here, investors have weathered back-and-forth in trade negotiations, a historic government shutdown...

Understanding Individual 401(k) Plans

If you're self-employed or own a small business, you've probably considered establishing a retirement plan. If you've done your homework, you likely know about simplified employee pensions (SEPs) and savings incentive match plans for...

How Will Working Affect Social Security Benefits?

Tip: Rules, Rules, Rules. Different rules apply for those receiving Social Security disability benefits vs. Supplemental Security income payments. Different rules also apply for those working outside the U.S.Source: Social Security...

Too High or Too Low

The U.S. inflation narrative has flipped, which has caused some bond-market angst recently. Deteriorating global conditions have shifted the economic landscape and fueled concerns that inflationary pressures could be too low, hinting...

The December Low Indicator Has Bulls Smiling

After the best first quarter for the S&P 500 Index since 1998, the big question is: What happens next? We’ve already discussed why a good start to a year could lead to more gains (here and here), but today we will take a look at...

The Economic Journey of Your Morning Coffee

This morning 100 million Americans began their day in the same way—drinking their first cup of coffee.¹ Few, if any, took a moment during this morning ritual to contemplate or marvel the complex journey that brought their...

Top 10 Tips for Fiscal Fitness

As days turn into weeks and weeks turn into months, it may feel like there is little time to catch up on all of your financial responsibilities. Sometimes it may be easier to simply toss ATM receipts, credit card bills, and bank...

What Happens When January, February, and March Are All Higher?

What a start to 2019! The S&P 500 Index had its best first quarter since 1998—gaining 13.1%. Taking a deeper look at the data reveals another rare occurrence: The S&P 500 was higher each of the first three months of the year for...

Benefit Plans for Small Businesses

If you own a small business, you may be finding it increasingly necessary to implement a benefit program to attract and retain employees. For small businesses, benefit plans generally consist of some of the major insurance benefits,...

Good News Indicators

The Conference Board’s Leading Economic Index (LEI) is one of our favorite economic indicators. It is designed to predict future movements in the economy based on a composite of 10 economic indicators (like manufacturers’...

Time For New Highs?

After dropping nearly 20% late last year, the S&P 500 Index has officially bounced up more than 20% from the December 24 lows. As we noted at the time, most bear markets that take place in a non-recessionary environment tend to bottom...

A Bucket Plan to go with Your Bucket List

The baby boomers have re-defined everything they’ve touched, from music to marriage to parenting and, more lately, to what “old” means—60 is the new 50! Longer, healthier living, however, can put greater stress...

Waking Up the Yield Curve

The Federal Reserve (Fed) heard the market’s alarm and shifted its stance, but the U.S. yield curve hasn’t woken up yet. As shown in the LPL Chart of the Day, the spread between 2-year and 10-year Treasury yields has...

Retirement Income Road Map for Women

More women are working and taking charge of their own retirement planning than ever before. What does retirement mean to you? Do you dream of traveling? Pursuing a hobby? Volunteering your time, or starting a new career or business?...

The Nasdaq’s 10 Weeks of Green

U.S. stocks’ recent momentum has been historically impressive by many measures, and the Nasdaq Composite Index notched another milestone last week. The Nasdaq has risen for the past 10 weeks, its longest winning streak in 19...

The Lowdown on Those Free Credit Scores

The Fair and Accurate Credit Transaction Act of 2003 provided individuals with valuable rights to the credit information that companies keep on them, but did you know the credit score provided to you may be different from the one...

Why A Green January and February Have Bulls Smiling

After gaining 7.8% in January, the S&P 500 Index has added another 3.3% so far in February for a grand total year-to-date return of 11.4%. With two days to go, currently this is the best first two months of the year since 1987. As we...

Trimming Our 2019 GDP Forecast

Economic data have consistently missed expectations recently as investors and Wall Street have struggled to quantify the impact of global trade and political risks. As shown in the LPL Chart of the Day, the Bloomberg U.S. Economic...

Bund Yields Hover Around Negative

Germany’s benchmark bund yield is on the cusp of negative territory, a symptom of increased appetite for government debt that could eventually weigh on U.S. rates. The 10-year bund yield, which closed at 0.09% (9 basis points, or...

What to Look for in a Long-Term Care Policy

Tip: How Old Are You? Age can makes a difference in the cost of a long-term care policy. Generally, the older you are when you purchase a policy, the higher you can expect the premiums to be. Source: U.S. Department of Health and Human...

A Fed Pause and the Flattening Yield Curve

Investors have increasingly positioned for a Federal Reserve (Fed) pause, which could portend a shift in fixed income markets. Fed fund futures are pricing in about a 70% probability that the Fed will keep rates unchanged for the rest...

Red Flags for Tax Auditors

No one wants to see an Internal Revenue Service (IRS) auditor show up at his or her door. The IRS can’t audit every American’s tax return, so it relies on guidelines to select the ones most deserving of its attention. Here...

Main Street’s Uncertainty Climbs

Recent U.S. economic data have been sending a lot of conflicting signals, and Wall Street’s economic outlook is more clouded than at any point of the cycle. Because of this, we thought we’d provide some direction from Main...

How to Make the Tax Code Work for You

By April 20, 2018, 138 million taxpayers had dutifully filed their federal income tax returns.¹ And all of them made decisions about deductions and credits—whether they knew it or not. When you take the time to learn more...

Brexit Hits Another Bump

Yesterday’s U.K. Parliament vote was another bump in the road for Brexit. As shown in the LPL Chart of the Day, the British pound and the euro have steadily declined over the past few months, weighed down in large part by...

Password Protection Strategies

Facebook, Twitter, LinkedIn—they’ve all fallen prey to hackers who exposed passwords and other personal information for hundreds of thousands of their users. If you haven’t yet had your password stolen, chances are,...

Do Your Kids Know The Value of a Silver Spoon?

Tip: Give Them a Look. Find a credit card calculator on the web to give your kids a real-life look at what it actually costs to “buy now, pay later.” You taught them how to read and how to ride a bike, but have you taught...

Money that Buys Good Health is Never Ill Spent

According to the Kaiser Family Foundation, the average person covered by Medicare has out-of-pocket medical expenses in excess of $5,500 a year. Premium costs accounted for 28% of the total, while long-term facility costs, medical...

Social Security: Maximizing Benefits

Most understand that waiting to claim Social Security benefits can result in higher monthly payments. However, many don’t know that there are other ways to maximize their benefits, some of which depend on their marital status....

Lower Valuations May Signal Solid Gains For Stocks

Stocks have rebounded strongly off the December lows, with the S&P 500 Index adding 2% in January to its 7% gain over the last week of 2018. We see potential for further gains ahead given the fundamentals supporting economic growth...

Where Will Your Retirement Money Come From?

Tip: Retiring Older. One survey found 22% of baby boomers have found it difficult to pay mortgages or rent and have postponed plans to retire.Source: Insured Retirement Institute, 2018 For many people, retirement income may come from a...

Market Fears and Economic Realities

Recent Federal Reserve (Fed) rhetoric has spooked financial markets, especially as uncertainty has clouded investors’ horizons. But we still believe the fundamental U.S. economic landscape is compelling, and despite market...

Putting an Extremely Volatile Market in Perspective

On Monday, the S&P 500 Index came about as close as possible to the technical definition of a bear market without officially registering one (defined as a 20% or larger decline based on closing prices). Enduring these sharp declines...

Is It Time For Santa?

So far it’s been rough for stocks in December, a month that has historically been bullish. How bad has it been? After 10 trading days, we’re off to the worst start to December since 1980! In fact, the S&P 500 Index is...

Outlook 2019

After nearly 10 years of witnessing the U.S. economy and stock market recover—and thrive—investors are starting to wonder if you’ve seen all the expansion this bull market has to offer. At LPL Research, we believe...

Bond Sector Swing

Yields on two-year and three-year Treasury notes remain higher than five-year yields after both spreads turned negative last week, known as an inverting of the yield curve. However, as we discussed last week, it’s the spread...

Time for Santa?

2018 has been a rocky year with a big dose of volatility, but could a late-year rally be in store for investors? History says it is quite possible. “Although the well-known Santa Claus rally is technically the last five days of...

Owning Bonds in the Latest Selloff

Investors just endured their second correction in U.S. stocks this year, and bonds proved once again that diversification plays a vital role in managing risk during market turbulence. The 10-year Treasury yield dropped 20 basis points...

Trends in Charitable Giving

According to Giving USA 2017, Americans gave an estimated $390.05 billion to charity in 2016. That’s the highest total in more than 60 years since the report was first published.1 Americans give to charity for two main reasons:...

Trade and Oil Concerns Boost Spreads to Two-Year Highs

Credit markets are now sharing global stocks’ angst over trade and oil. As shown in the LPL Chart of the Day, credit spreads on investment-grade and high-yield corporate debt have jumped to their highest levels since December...

Bond Market Perspectives: Tide Turning in 10-Year Treasury Futures

Speculators who built the biggest net short position on record in 10-year Treasury futures have reversed course. As shown in the LPL Chart of the Day, non-hedging traders’ net short position in 10-year futures decreased for five...

Midterms and the Markets

The potential outcomes of the midterm elections have been dominating the news cycle lately, and we know from history that the markets typically do not like uncertainty. With the Democrats taking control of the House of Representatives,...

A Penny Saved is Two Pennies Earned

This modern twist on the Ben Franklin maxim reflects the multiplicity of taxes to which earnings are subject in today’s world.¹ Finding ways to manage expenses is one of the cornerstones of a sound financial strategy. Here...

Five Takeaways on October’s Rough Ride

October has been a rough month for equities, but then again it’s historically been one of the most volatile periods of the year. “October is known for volatility, and we’ve sure seen it so far,” explained...

What Happens If You Miss the 10 Worst Days of the Year?

After more than three months without a single 1% change (up or down) for the S&P 500 Index, volatility came back—and in a big way—this past week. This brings up an interesting question: What would happen if you could avoid...

Estate Management Checklist

Do you have a will? A will enables you to specify who you want to inherit your property and other assets. A will also enables you to name a guardian for your minor children. Do you have healthcare documents in place? Healthcare...

Caring for Aging Parents

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 60 is growing. The United Nations estimates that by 2050 the number of people aged 60 and older will have more than doubled.¹ As our...

GOOD CREDIT: TEACH YOUR CHILDREN WELL

Many parents teach their children the ABCs at a very young age, but do they teach them the ABCs of good credit? At certain points in life, everyone must deal with banks, loans, credit, and finances. You may have learned your lessons...

Six Keys to More Successful Investing

A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic...

How to Invest for Major Financial Goals

Go out into your yard and dig a big hole. Every month, throw $50 into it, but don't take any money out until you're ready to buy a house, send your child to college, or retire. It sounds a little crazy, doesn't it? But that's what...

6 Tips to Take Control of Your Financial Health

Similar to taking care of your personal health by proactively incorporating healthy habits and annual checkups, you can also take control of your financial health when you are proactive and engaged in managing your finances. And also...

Five Money Rules to Live By

It’s not simply a matter of working harder; it’s much more about using your non-financial skills and talents in new ways to bring you prosperity and a greater sense of personal satisfaction. Here are five tips to follow...

Five Ways to Save for College

College won’t pay for itself. How will you pay for it? You may have more choices than you think. Is creating a college fund on your to-do list? Consider these options. 529 plans. Anyone can contribute to these savings vehicles....

A Cheat Sheet For Sending Your Kid to College

College marks a great milestone in a child’s life. It may be the first time he or she will live away from home. Dropping off your child at college may be an experience loaded with emotions, so here are a few tips for a smoother...

Midyear Outlook 2018

The recently released LPL Research Midyear Outlook 2018: The Plot Thickens is filled with investment insights and market guidance to take us through the rest of the year. So far this year, the return of the business cycle has brought...

Keeping an Eye on Global Activity

The summer months are almost underway, which means that both vacations and midyear check-ins are ahead. As we approach the midpoint of 2018, many of us will take this opportunity to reflect on what we’ve seen so far and what may...