MARKET FEARS AND ECONOMIC REALITIESEconomic Commentary |
Market participants’ evaluation of increasing policy uncertainty has contributed to sharp equity market declines over the last quarter.
The list of issues raising concerns has been broad: the Federal Reserve (Fed); trade policy; looming Brexit deadlines; lack of a fiscal response to slowing growth abroad; worries about a slowing fiscal impact at home; tightening labor markets; partisan political bickering; a government shutdown; and executive branch turnover, to name a few. We don’t believe that any of these factors individually is currently a serious threat. Collectively, they have tipped market sentiment toward a brooding sense of uncertainty.
John Lynch Chief Investment Strategist, LPL Financial
Barry Gilbert, PhD, CFA Asset Allocation Strategist, LPL Financial