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LPL Financial Publishes Midyear Outlook 2023
2023 started with a theme of returning to normalcy—a theme we could all embrace six months ago and will continue to rally around through year-end CHARLOTTE,
About this update from Lpl Financial Holdings Inc.
[{"type":"text","content":"2023 started with a theme of returning to normalcy—a theme we could all embrace six months ago and will continue to rally around through year-end\nCHARLOTTE, N.C., July 11, 2023 (GLOBE NEWSWIRE) -- LPL Financial LLC today released the firm’s Midyear Outlook 2023 report, in which LPL’s Research team discusses the work that lies ahead in the second half of 2023. The report includes insights and analysis of the economy and markets, and is available in an interactive digital version and as a downloadable PDF. “Ultimately, how rate volatility resolves itself will be a big driver for markets,” said LPL Chief Investment Officer and Director of Research Marc Zabicki. “The LPL Research team doesn’t have a crystal ball, but there are two things we know. The insights in this report will help position investors, along with guidance from their financial advisor, to achieve their goals. Second, our seasoned team of experts will be by your side, providing actionable insights as the rest of the year unfolds.” Among the key forecasts and topics discussed in the Midyear Outlook 2023 report: Economy: The baseline forecast is that the domestic economy slides into recession in the late half of 2023 as consumer demand cools, especially for services. If job growth cools and the unemployment rate rises, consumers will likely experience declining disposable income, which could be the impetus for a recession as consumers pull back on spending. But in the near term, consumers are still unleashing pent-up demand for services.Stocks: In the first half of 2023, progress was made toward better balance as inflation fell and interest rates stabilized. However, macroeconomic risks remain top of mind as a potential recession looms. Earnings are likely to decline this year, but solid revenue growth and stable profit margins may help limit the magnitude of any decline.Bonds: After the most aggressive rate-hiking campaign in decades from the Fed, short-term interest rates are at levels last seen in the early 2000s. At the currently elevated levels, the risk is that these rates won’t last, and upon maturity, investors will have to reinvest proceeds at lower rates. “The economy and markets made progress toward regaining balance in the first half of 2023, but more work lies ahead. Reclaiming that state of balance helps us feel grounded, rooted in stability and the comf...