What I’m Thankful For

With Thanksgiving approaching, the LPL Research team took time to reflect on what we are thankful for in the markets and personally.

On a personal level, I’m thankful for family, health, and the opportunity to live in this great country. On a professional level, I’m thankful that I am able to do work that I enjoy—and do it with so many great people, both LPL advisors and employees, in support of a mission that I believe in: providing conflict-free financial advice. I’m thankful for the opportunity to work with so many great and talented people in the LPL Research Department under the inspirational leadership of Burt White, who makes us all better. And I’m thankful for the resilience of the U.S. economy and markets to ride through uncertain times and help all achieve our long-term financial goals. – @jbuchbinder_LPL

Think back to how 2016 started. It was the worst January for the S&P 500 since the Financial Crisis and after 28 full trading days it was down 10.5%, the worst start to a year ever. Crude oil was crashing, credit markets were cratering, many strategists were calling for single-digit oil prices and had significantly lowered their year-end targets on equities. What happened? The world didn’t end, and I’m thankful that once again dire forecasts proved overdone. Now with about six weeks to go in the year, the S&P 500 is up nearly 10% on a total return basis, the year-long earnings recession is over, and the economy is showing signs of improvement. I am also thankful to be a part of the LPL Research team for nearly a year now. It has been fun to get to know so many advisors and make a lot of great friends along the way. Lastly, here’s to a great Thanksgiving holiday with family and not too many discussions about politics! – @RyanDetrick

Here in November, the U.S. economic picture continues to show improvement, and we anticipate that the economic recovery that began in mid-2009 may pass its eighth birthday in 2017, as we discussed in our just published Outlook 2017: Executive Summary. Supporting this recovery, the U.S. consumer and the services sector of the economy remain solid. Additionally, private sector job growth has been steady and lifted wages, supporting consumer spending and home values throughout 2016. Main Street’s optimism continues, as we saw throughout the year via the Federal Reserve’s Beige Book updates. Many LPL advisors on Main Streets throughout the country welcomed me to their hometowns over the past year, and I am thankful for opportunities I had to discuss their sense of optimism, the challenges they face, and what matters most – helping investors and their families meet their long-term goals. – @JohnCanally

Making sense of the global markets in 2016 has been challenging, and when unexpected events such as the U.K.’s decision to leave the European Union and the recent U.S. election occurred, I am thankful to collaborate with the LPL Research team on providing our best investment advice to LPL advisors. I have been encouraged that fundamentals overseas have been improving, particularly in emerging markets, as have valuations, where emerging markets are especially attractive. Closer to home, recently I had the opportunity to participate in an opening event for Big Brothers Big Sisters of Greater Charlotte’s Beyond School Walls program at our new offices in Fort Mill, South Carolina. I was inspired and humbled by the commitment LPL volunteers have made to so many students; they will be serving as mentors and role models in the years ahead. I was equally inspired by the students who were excited to learn from our volunteers. I am thankful to work with an organization that continues to have a high level of community engagement. – @mattpetersonlpl

From all of us at LPL Research, we wish you and your families a wonderful Thanksgiving holiday.

IMPORTANT DISCLOSURES

Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

The economic forecasts set forth in the presentation may not develop as predicted.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

Stock investing involves risk including loss of principal.

Investing in foreign and emerging markets securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

Commodity-linked investments may be more volatile and less liquid than the underlying instruments or measures, and their value may be affected by the performance of the overall commodities baskets as well as weather, geopolitical events, and regulatory developments.

Because of its narrow focus, specialty sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The Beige Book is a commonly used name for the Fed report called the Summary of Commentary on Current Economic Conditions by Federal Reserve District. It is published just before the FOMC meeting on interest rates and is used to inform the members on changes in the economy since the last meeting.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

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Tracking # 1-558468 (Exp. 11/17)