Street View: Fore Things To Know
As an investor, we encourage you to watch LPL's new Street View Video - Fore Things to Know. Ryan Detrick, Chief Market Strategist for LPL Research explains key items investors need to understand about the markets and economy.
- Higher 10-Year Yield: The yield curve has recently been steepening (when short-term rates stay low and longer term rates rise) with the yield on the benchmark 10 year Treasury rising above 1.60% for the first time in over a year. Historically, stocks have done well during a period of steepening yield curves. It is the market's way of saying the economy is improving.
- Nasdaq: The Nasdaq recently slipped into correction territory (down 10%) temporarily before rebounding. We were expecting to see a pull back in the market and were encouraging investors to view this as an opportunity. "In fact, looking at previous corrections shows us that six months later the Nasdaq is up 23% on average and higher 9 of the previous 11 times,” said Detrick. You can read more in our recent communication, "We Were Ready".
- Inflation: We have heard a lot about inflation as a result of what the Fed is doing and the recent passage of the $1.9 trillion stimulus package. We believe higher inflation is likely coming. However, we do believe it will remain manageable. You can read more in our recent communication, "Inflation or Reflation"?
- Economy: The economy is opening up and getting stronger. Positive cases of Covid-19 are trending down, while vaccination numbers are increasing.
If you have specific questions or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at contactus@covenantwealthstrategies.com to set up time to discuss further.
Disclosures:
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
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 do 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 information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index and market data from FactSet and MarketWatch.
This Research material was prepared by LPL Financial, LLC