Three Trends To Watch For The Rest Of 2016

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MMM Newsletter and Website Header 10.2.15I hope you had a great weekend! It is almost time to start thinking about your Halloween costume!

LRPC’s Monday Morning Minute for this week, “Three Trends To Watch For The Rest Of 2016” (presented below) comes to you courtesy of Lord Abbett. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share enlightening, useful information with you each week. If you are short on time, make sure you take a look at each of the headings

What’s going to happen in the markets for the rest of this year? Take a look below at what economic trends the experts from Lord Abbett think we should focus on.

Have a wonderful week!

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Three Trends To Watch For The Rest Of 2016

By Zane E. Brown, Lord Abbett

In Brief

  • Summer 2016 has been anything but quiet for investors, with the “Brexit” vote, troubles in the Italian banking sector, expectations of U.S. economic improvement, and the prospect of a U.S. interest-rate hike dominating the headlines.
  • With investors focused on how the rest of 2016 could play out, we have identified three economic trends to keep an eye on in the coming months: 1. Both the U.S. economy and U.S. Federal Reserve policy seem headed higher, 2. Key economies outside the United States seem at greater risk, 3. Central bank policy responses could perpetuate “lower for longer” rate.
  • The key takeaway — U.S. economic resilience, the likelihood of slower growth elsewhere, and “lower for longer” monetary policy among developed countries could encourage investors to reposition their portfolios during the remainder of 2016.

With the U.S. Labor Day holiday over and the kids back in school, financial markets are taking stock of Summer 2016. If investors were expecting a quiet, uneventful season, they were disappointed. The global investment environment has changed meaningfully since June. The surprising decision by Britain’s voters to opt for “Brexit” in late June, continuing troubles in the Italian banking sector, expectations of better second half growth in the United States, and renewed likelihood of a rate hike by the U.S. Federal Reserve (Fed) suggest investors may want to perform a post-Labor Day check-up on their portfolios.

What are the important economic trends they should be watching as we head into the year’s home stretch? And how might they wish to position their portfolios? Here, we’ll attempt to answer those questions. [Read more…]