2024 Midyear Market Outlook: Still Waiting For The Turn

Market turbulence cannot be avoided, however it should not deter us from making progress toward our financial goals.

LPL Research Presents:

2024 Midyear Outlook Still Waiting For The Turn

As we reach the second half 2024, a sense of persistence defines the economic and market landscape. Trends from late 2023 have continued, with surprisingly resilient economic growth mixed with stubborn, yet decelerating inflation. Equity markets have thrived and regained all the lost ground from 2022. On the other hand, the bond market still grapples with policy uncertainty and remains range bound for the most part.

Economic growth has continued to surprise on the upside, and a slowdown has proven elusive. This economic resilience can largely be attributed to strong consumer spending and varying degrees of interest-rate insensitivity throughout parts of the economy. That said, a delayed landing is on the horizon. Hard and soft economic data has begun to deteriorate, and we anticipate an economic slowdown beginning in the latter half of 2024. Investors should be prepared for slower consumer spending, a softer labor market, and contained inflation – all core ingredients needed to give the Federal Reserve (Fed) an onramp to cut rates before the end of the year.

To navigate this evolving landscape, we leverage the expertise of LPL's Strategic & Tactical Asset Allocation Committee (STAAC), which identifies potential risks and opportunities. In today’s higher-rate environment, the STAAC believes investors have more options. By prioritizing income generation and remaining patient and disciplined with equities, investors can navigate the upcoming potential uncertainty with continued success.

No matter what the markets and economy throw our way, our team at Covenant and LPL Research remain committed to providing you with best possible guidance. It's a privilege to be in this role, and we truly appreciate the trust and confidence you continue to place in us.

We encourage you to read LPL's 2024 Midyear Outlook and Contact Us if you have questions or would like to schedule time to discuss further.

Disclosures:

The opinions, statements and forecasts presented herein are general information only and are not intended to provide specific investment advice or recommendations for any individual. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. There is no assurance that the strategies or techniques discussed are suitable for all investors or will be successful. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Any forward-looking statements including the economic forecasts herein may not develop as predicted and are subject to change based on future market and other conditions. All performance referenced is historical and is no guarantee of future results.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.