Market Update: Thurs, July 18, 2019 | LPL Financial Research

LPLResearch-Macro-View

Daily Insights

Stocks opened slightly lower with earnings and trade in focus. Market participants are digesting a wave of earnings results this morning, including poorly received results from Netflix, and expressing some concern about the cautious tone of the latest trade headlines. Weak export data in Japan (a close China trading partner), Korea’s lowered economic growth forecast, and significant mentions of tariffs in the Federal Reserve’s Beige Book all highlight the ongoing impact of the U.S. China trade dispute. The good news is the two sides are talking this week, according to Treasury Secretary Steven Mnuchin.

Are developed international-market stock valuations too low to ignore? Stock valuations in developed-international markets are quite a bit lower than those in the United States. However, peel back the onion and you will find that the MSCI EAFE Index–the benchmark for developed international equities primarily composed of European and Japanese stocks–actually appears closer to fairly valued than underpriced due to different sector and profitability profiles. We discuss international stock valuations today on the LPL Research Blog.

 

IMPORTANT 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. The economic forecasts set forth in this material may not develop as predicted.

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.

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.

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

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

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

Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

All company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All performance referenced is historical and is no guarantee of future results.

This material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL Financial affiliate, please note LPL Financial makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value

Index data obtained via FactSet

Member FINRA/SIPC

For Public Use – Tracking # 1-873927