With everything else going on this year due to COVID-19, it’s been easy to lose track of the latest fallout of the United Kingdom’s (UK) withdrawal from the European Union (EU), also known as Brexit. The UK is currently in the middle of an 11-month transition period that started on the official Brexit date of … Read more
The outbreak of COVID-19 caused considerable deterioration in the economy and left many wondering when we might expect conditions to improve. As historic stimulus measures were implemented to backstop the economy from outright collapse, many also wondered if this would be enough to restore sentiment to a level where economic activity would follow. We are … Read more
The incredible rally off the March 23 bear market bottom continues, with the S&P 500 Index up more than 50% from those fateful lows. It feels like a lifetime since the longest bull market ever ended. Remember though, although the recent bull market was the longest, it wasn’t the greatest, as the 1990s bull gained … Read more
US Stocks opened slightly lower. The modest selling pressure that followed the somewhat downbeat economic commentary from Wednesday’s Federal Reserve (Fed) meeting minutes has carried over this morning. Futures pared losses overnight on reports that US and China trade officials have agreed to meet in the coming days, but an increase in jobless claims dampened sentiment ahead of … Read more
The Federal Reserve (Fed) completed its latest two-day policy meeting Wednesday, July 29, and the primary message coming from the world’s most important central bank was a continued commitment to supporting the economy as long as it’s needed—and probably even a little longer, we believe, just to provide a margin of error. The Fed kept … Read more
Leading economic indicators continued to rebound in June, albeit at a slightly slower pace than in May. Yesterday, The Conference Board released its June report detailing the latest reading for its Leading Economic Index (LEI), a composite of data series that tend to lead changes in economic activity. As seen in the LPL Chart of … Read more
What is a Collateralized Loan Obligation (CLO)? Collateralized loan obligations (CLO) are portfolios of leveraged loans, a type of below-investment grade loan usually taken out by more heavily indebted companies. Each CLO is divided into a series of tranches with different degrees of risk. The more senior tranches receive their interest payments first, and therefore, have … Read more
Yesterday, The Conference Board released last month’s reading for its Leading Economic Index (LEI), a composite of leading data series, which showed a month-over-month increase of 2.8%. As seen in the LPL Chart of the Day, the return to positive territory follows three straight months of negative monthly growth. ”We noted that the pace of … Read more
The Federal Reserve (Fed) completed its third scheduled policy meeting of the year Wednesday, June 10, and continued to signal strong support for the economy, committing to keeping rates near zero until it is confident of a recovery and maintaining bond purchases (“quantitative easing”), at least at the current level. “Despite some early signs of … Read more
In many ways, what we’ve seen so far in 2020 has been both record-breaking and devastating. From the S&P 500 Index peak on February 19 to the bear market lows March 23, stocks lost 33.9%. Now, 50 trading days later, stocks have gained 39.6%, for the largest 50-day rally since the S&P 500 moved to … Read more
Despite the gradual reopening of the economy in several states, sentiment on Main Street remains suppressed, as the effects of COVID-19 appear to be keeping a lid on American optimism in the most recent Federal Reserve (Fed) Beige Book. In the Beige Book, the Fed presents qualitative observations made by community bankers and business owners—or … Read more
Most economic charts we look at in the LPL Research Department look alike. Many segments of the US economy came to an abrupt halt in March when the lockdowns and business closures began, making most economic charts covering March and April look like a steep drop on a roller coaster. Two months later, the economy … Read more
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