We remain fans of diversification, including geographic diversification for suitable equity portfolios. Sticking with that approach has been trying in recent years, however.

As shown in the LPL Chart of the Day, Struggles for International Stocks Continue, stocks in developed foreign markets, represented by the MSCI EAFE Index, have trailed those in the United States significantly and consistently for the past decade. The story is the same for emerging market (EM) stocks.

We maintain developed international equity allocations in our strategic portfolios with long time horizons. At some point, the tide w

U.S. manufacturing contracted in August for the first time since January 2016 as trade uncertainty continued to weigh on the sector.

The Institute for Supply Management’s (ISM) manufacturing Purchasing Managers’ Index (PMI), fell to 49.1 versus consensus expectations of 51.3, a meaningful decline from July’s 51.2 reading (above 50 is considered expansionary territory).

Underlying details in the report showed more weakness could be ahead. ISM’s new orders sub-index, which tends to act as a leading indicator for manufacturing health, fell to 47.2. That’s one of the lowest readings of the c

First and foremost, our thoughts are with all of those that were impacted by Hurricane Dorian over the Labor Day holiday and all those that are still in its path.

Many have asked us what stocks tend to do after a major hurricane hits the United States. Given we had category 4 and 5 hurricanes last year, this question unfortunately seems to come up more than anyone would like.

“Although the devastation a major hurricane causes can’t be denied, it is worth noting that equity markets have taken the storms in stride,” explained LPL Financial Senior Market Strategist Ryan Detrick. “In fact, a month

We recently reduced our year-end forecast range for the 10-year U.S. Treasury yield from 2.5–2.75% to 1.75–2%. This significant reduction reflects what we consider the many somewhat curious aspects of the domestic and global macroeconomic environments. Trade uncertainty, low inflation, geopolitical risks, monetary policy, and relative valuation all played a role in our decision. To be sure, delayed prospects for a U.S.-China trade agreement remain central to our economic and market projections in the coming months.

We expect the combination of a softer economic growth outlook with mild U.S. inflationary pressures and