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Going into the Fourth Quarter | LPL Financial Market Signals Podcast

October 02, 2018

LPL Financial research strategists, John Lynch and Ryan Detrick, discuss Italy’s bonds falling, the upcoming jobs report, yet another rate hike by the Fed, and other fourth quarter issues.

It’s not just the tax cuts. There is some mojo here behind economic activity.

- John Lynch - Chief Investment Strategist at LPL Financial

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There are numerous questions on investors’ minds as we move into the fourth quarter of this midterm year. With the Fed raising interest rates last week for the eighth time this cycle, many are wondering what this could mean for the economy and potential future hikes.

The good news is that October tends to see strong returns for equities during a midterm year, and the fourth quarter of a midterm year has been the best quarter out of the entire four-year Presidential cycle. We’re looking at another solid quarter of earnings growth, which further confirms the strength in the US economy.

The jobs picture remains strong as well. But what should investors be looking for in the September employment report due out on Friday? And as Italy’s bonds fall further, will its budget troubles affect the rest of Europe—or possibly the world?

Tune in to this week’s podcast to hear what LPL Research strategists, John Lynch and Ryan Detrick, have to say about some of the economic issues that are top of mind as we enter the final quarter of 2018.

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October gets a bad rap because of some spectacular crashes, but overall it is a solid month. Things get even better during a midterm year though, as it is the strongest month of the year.

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Stocks do quite well during the fourth quarter of a midterm year. In fact, it is the best quarter out of the entire four-year presidential cycle for the S&P 500 going back to 1950.

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Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Investing involves risks including possible loss of principal.

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