As with many things in life, navigating capital markets would be easier if everyone had a crystal ball or a 1985 DeLorean equipped with a flux capacitor to provide a glimpse of what’s ahead. However, there are some popular metrics that market watchers can turn to for insights on the future of equity markets, including forward price-to-earnings ratios (forward P/E). Forward P/Es are calculated by dividing the current price of an individual stock, sector, or index, by the estimated future earnings, typically analysts’ consensus earnings estimate for the next 12 months.

While forward P/E is useful to help assess the market&

In today’s globalized economy, the structure of a country’s tax system plays a crucial role in determining its economic performance. International tax competitiveness, which refers to how favorable a country’s tax policies are compared to others, can significantly impact both business and investment decisions. In times of economic slowdown, the policy response — which often includes monetary easing — should include business-friendly tax policies. Here’s why investors should carefully monitor for any progress on the tax front that lifts the U.S. from its 18^th rank in tax competitiveness — currently beh

The recent downturn in equity markets has heightened fears of a looming recession among investors. Factors such as newly imposed tariffs by the new presidential administration, concerns about an economic slowdown, and persistent inflationary pressures have all contributed to the prevailing bearish sentiment. While equities have declined in recent weeks, credit spreads — the gap between corporate bond yields and U.S. Treasury bond yields — have widened. This widening is seen by some as a potential recession signal, reflecting greater risk aversion and unease about the economic outlook.

For instance, the ICE BofA U.S. H

As highlighted in previous LPL Research blogs this week (“Invest in the Long Term” and “Equity Markets Grapple With Tariffs”), market volatility and pullbacks are not uncommon by any means. Unfortunately, what is also not uncommon during bouts of volatility is headlines reliving previous crises that attempt to compare and draw parallels. One of those narratives as of late surrounds the dollar, facing its worst start to a year since 2008. But while the dollar may be experiencing some headwinds, this does not spell doom and gloom for King Dollar or the U.S.

Tariff and trade developments have dominated headli