LPL Research

Last week, the 10-year Treasury yield fell below the 3-month yield for the first time since 2007.

Following the stock market’s recent move higher, coupled with a slightly weaker economic and corporate profit outlook, the risk-reward trade-off in stocks has become less attractive.

No changes.

WEC Description: February’s job growth was disappointing, but it followed the biggest two-month gain since 2016.

Small cap stocks have performed well so far in 2019; however, we
believe the environment is getting tougher.

U.S. economic data were sound in February, even as confidence fell amid uncertainty from global trade and political headwinds.

Following such a strong rally since the December 24 lows, a pullback is reasonable to expect.

Our Beige Book Barometer has dropped to its lowest level since the 2011 European debt crisis.

Please see our latest client letter, which discusses the bull market.

Slow (but steady) growth and accommodative policy have made this expansion especially durable.