Looking back on the first half of this year, we saw modest positive returns across most sectors, however, the front-and-center story again was inflation and the Fed’s interest rate policy. The markets are still fairly obsessed with projecting what’s coming at the next meeting, longer-term, and what the inflection in Powell’s tone means. (ok so maybe a bit exaggerated, but you get the picture).
In light of all the economic noise, while acknowledging there are both encouraging and discouraging signs in our economy–we harken back to a favorite sketch that illustrates “Things that Matter” and “Things You Can Control”. Our focus is on the convergence of those two areas.
When it comes to your investments, that means a continued focus on high-quality balance sheets for equity selection and a continued bias towards higher-yielding money market funds for the conservative fixed portions of portfolios while we remain in a somewhat uncertain higher rate era.
Check out the full LPL Midyear Outlook below:
IMPORTANT DISCLOSURES
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full MIDYEAR OUTLOOK 2023: The Path Toward Stability publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC.
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