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.-China trade discussions, an encouraging outlook from corporate America, and continued strength in consumer spending.

Trade risk, slower global growth, and the impeachment inquiry have garnered a lot of the headlines recently, but behind the scenes the U.S. economy has remained resilient. Economic data has been meeting lowered expectations, indicating an expansion that is still enduring. Most recently, third quarter economic growth was consistent with the long-term trend of this current economic expansion, which is now more than 10 years old.

We expect the U.S. economy to continue to grow in 2020 and support gains for stocks, although we are increasingly mindful of our position in the business cycle. At some point in the future, this record-long expansion will come to a close, leaving investors wondering what’s next. Against this backdrop, questions about the next potential recession and the 2020 U.S. presidential election continue to be top of mind for many investors. While we can’t see into the future, one thing we can predict is that uncertainty in the markets is here to stay. And we are here to help. We offer our Outlook 2020, your guide to preparing for this dynamic—and uncertain—market environment.

Read more about our forecasts and key themes in the full publication.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full Outlook 2020: Bringing Markets Into Focus publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC.

LPL Government Relations Newsletter

Judy was featured in last month’s LPL Government Relations Newsletter. The commitment she has to her clients and firm is inspiring to her team!

“LPL Advisor, Judy VanArsdale with Lakeview Wealth Management, sits on the LPL PAC Advisory Board and has been an outspoken advocate on a variety of issues. Judy was even asked to testify before the House Ways and Means Subcommittee on Oversight at a hearing on the Department of Labor’s now invalidated fiduciary rule. Judy’s advocacy work is essential to LPL and our industry.”

LPL Government Relations Video

First Quarter 2018 In Review

Data pointed to a U.S. economy that has slowed slightly but continued to grow at a steady pace during the first quarter. Real gross domestic product (GDP) growth increased at an annual rate of 2.9% in the fourth quarter of 2017, above the average for the economic expansion at just over 2%. As of quarter end, Bloomberg economists’ consensus forecast for first quarter GDP stood at 2.5%, while leading economic indicators pointed to continued solid growth, due in part to the new tax law.

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