LPL Research

Escalating trade tensions have made for a difficult investing environment.

The BOJ meeting last week was a nonevent, as expected, but last week’s Fed and ECB meetings gave investors some minor surprises.

Increased business capital expenditures, or “capex,” remain one of the most important pieces for improving the long-term growth trajectory of the U.S. economy.

Capital investment is accelerating, a trend we believe should continue.

Downgraded precious metals view to negative/neutral from neutral.

Investment-grade (IG) corporate bonds have been the worst-performing high-quality bond segment year to date.

The Fed is widely expected to raise rates for the second time this year at the conclusion of its policy meeting on Wednesday.

After the longest run of outperformance of growth stocks ever, we think value may be poised for a comeback.

“Economic reports released in May 2018, largely reflecting economic activity in April, showed continued solid economic growth in the U.S.”

Overall, we think the global economic backdrop, particularly in the U.S., remains intact. Although the situation in Italy is an ongoing risk worth monitoring, we don’t believe it indicates a change in the trajectory of the global economy.