LPL Research

We continue to prefer emerging market (EM) equities in tactical asset allocations.

The U.S. dollar has staged a strong rally recently after significant weakness in 2017.

“Updates on LPL Research’s views on equity, equity sectors, fixed income, and alternative asset classes.”

The 10-year Treasury yield recently crossed the psychologically important 3% level for the first time since December 2013.

In this week’s commentary, we recap the outstanding near-complete first quarter earnings season, highlight some of the key themes, and show why a potential peak in earnings growth is not cause for immediate concern.

Consumers will feel the impact of higher oil prices, but the effect may be small compared to the benefits of a strong job market and the new tax law.

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

China could sell its holdings of Treasuries, potentially leading to higher U.S. rates.

Economic data received over the first week of May indicated steady economic growth with only marginal risk of overheating.”

The May through October period has historically been the weakest six months for equities.