We are pleased to announce the release of the LPL Research Outlook 2019: FUNDAMENTAL: How to Focus on
What Really Matters in the Markets, filled with investment insights and market guidance for the year ahead.
After nearly 10 years of witnessing the U.S. economy and stock market recover—and thrive—investors are
starting to wonder if we’ve seen all this expansion and bull market have to offer. At LPL Research, we believe
there’s more room to run, thanks to strong corporate profits and continued fiscal stimulus, in the form of
government spending, reduced regulation, and lower taxes.
Against this backdrop, we expect gross domestic product (GDP) of up to 2.75% for the U.S. economy, supported by
increased spending from consumers, businesses, and the federal government. Based on expectations for economic
growth and monetary policy, along with the noted fiscal tailwinds, we expect 2019 may be another good year
for equity investors. Accordingly, LPL Research forecasts total return possibilities within the range of 8–10%
for the S&P 500 Index. With market interest rates climbing from historic lows, bond investors must be prepared
for gradually rising rates, with periodic surges that may temporarily affect sentiment. As a result, we expect flat
returns for bonds in 2019, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index.