The fourth quarter is winding down, and investors are getting nervous that volatility in the short-term lending market could flare up once again.

Rates on repurchase agreements (repos) jumped in September 2019 amid a shortage of cash available to lend, forcing the Federal Reserve (Fed) to restore balance in the system by purchasing U.S. Treasuries and other securities from firms. We covered that episode in our blog, “The Repo Market’s Perfect Storm,” on September 27.

The Fed’s actions eventually stabilized repo rates, and financial markets ultimately shrugged off the issue. The S&P 500 Ind

December has been widely viewed as a strong month for stocks, with this year following suit so far. What many probably don’t realize, however, is the majority of the gains have taken place late in the month.

“December has been a good month so far, but can it continue? Turns out, the majority of December’s gains have tended to happen in the second half of the month—so we still have time to believe in Santa,” explained LPL Senior Market Strategist Ryan Detrick.

As Ryan Detrick and Jeff Buchbinder discussed on the most recent episode of the LPL Market Signals podcast, with new clarity on U.

2019 was a baffling year for bonds. The 10-year U.S. Treasury yield fell to a three-year low, and the yield curve flashed ominous signals about the economic outlook. We’ve seen some improvement in long-term yields since the September low, but we don’t expect much more upside in 2020. However, bonds can still play an important role in helping to diversify portfolios where appropriate.

The Year in Review

One of our biggest challenges in 2019 was explaining the bond market’s baffling signals. Many firms—including ours—kicked off 2019 with expectations of rising rates after the Federal Reserve&rsquo

U.S. stocks rose this week, with the S&P 500 Index gaining for the ninth week out of the past ten. Stocks rallied late in the week in anticipation of a “phase one” trade deal with China and the removal of a tariff hike scheduled for December 15. A verbal agreement was reportedly reached on Friday. Investor sentiment was also lifted by United Kingdom (U.K.) election results and Federal Reserve (Fed) communications.

Economic data was mixed overall this week, though it is notable that the Fed characterized the U.S. economy in more upbeat terms. The core Consumer Price Index, excluding food and energy prices, grew a m