2021 Mid-Year Outlook: Picking Up Speed
While the speed can be exhilarating as economic growth accelerates, it can also be dangerous. Our Mid-Year Outlook 2021: Picking Up Speed is designed to help you navigate the risks and opportunities brought upon by the economy’s reopening for the rest of 2021 and beyond. The highlights in the report include:
- Economy: Speeding Up. The country has reopened and there is still plenty of momentum to extend above-average growth into 2022. LPL researchers forecast 6.25 to 6.75 percent U.S. gross domestic product (GDP) growth in 2021, which would be the best year in decades.
- Policy: Taking a Backseat. The economy was supported through the pandemic by more than $5 trillion in stimulus measures and extraordinary support by the Federal Reserve. Policy will take a back seat in 2021 as private sector growth replaces stimulus checks.
- Stocks: Gaining Ground. Economic improvement should continue to support S&P 500 Index earnings, which had a stunning first quarter. While valuations remain somewhat elevated, we think they look reasonable after considering still low interest rates and earnings growth potential.
- Bonds: Safety Features. Inflationary pressure and economic improvement may put additional upward pressure on the 10-year U.S. Treasury yield. We anticipate the 10-year yield finishing 2021 in the range of 1.75 to 2 percent.
On a related topic, our team will be hosting a virtual 2021 Mid-Year Outlook with Ryan Detrick, Senior Vice President and Chief Market Strategist from LPL Financial Research. Ryan will highlight and discuss the economy, inflation, fiscal policy and the markets. We hope you can join us!
2021 Mid-Year Outlook
Thursday, August 12th
4:00 pm Et
Please register early and try joining our virtual event via Zoom 10 minutes prior to the start time to ensure that your technology works. If you are experiencing any technical difficulties, please call our office to speak with Randy or Chris at (302) 234-5655.