Wealth Management

Posted by lplresearch

Wednesday, November 24, 2021

The big news this week was Jerome Powell will remain in charge of the Federal Reserve (Fed) for four more years, so we wanted to do a quick blog that looked at how stocks have done while he has been the Fed Chairman.

“There are many reasons for Jerome Powell to lead the Fed for another four years,” explained LPL Financial Chief Market Strategist Ryan Detrick. “But one of the best could very well be that stocks have done quite well under his leadership. Do you really think he’d still be in charge if stocks did poorly under him? Probably not is the answer there.”

As shown in the LPL Chart of the Day, the Dow has gained 40% under his leadership, ranking him 8^th (near the middle of the pack) when compared with all 16 Fed Chairpersons. Interestingly, he ranks just beneath both of his predecessors in Ben Bernanke and Janet Yellen. With four more years to go, you’d have to like his chances there, but Alan Greenspan’s record of 312% is likely safe for the time being.

View enlarged chart.

Here are some more Fed Chair fun facts (using the chart below).

• On an annualized basis, the Dow has gained 9.3% per annum under Powell, the 7^th best out of 16.
• Interestingly, stocks have dropped under only one Fed Chairperson and that was Eugene Meyer during the Great Depression.
• Taking another look at Greenspan’s 312% return and we realize he was in charge of the Fed for 18.5 years. So his annual return of 8.0% puts things in perspective.
• The shortest tenure ever was less than a year and a half back in the late 1970s under William Miller. Meanwhile, the longest ever was William Martin at nearly 19 years.
• Paul Volker had the best annualized return at 15.2% over his 8 years. Not to mention he handed things over to Greenspan right before the 1987 crash, one of the best handoffs we’ve ever seen in history.
• Lastly, the Fed has been led by a woman only once and that was Janet Yellen, now in charge of the Treasury. It is worth noting that her four-year run at the Fed produced a very impressive 12.9% annualized return for stocks.

View enlarged chart.

This was a fun blog that also takes a look back at history, we hope you enjoyed it. If you’d like more of our immediate thoughts on the Powell decision, please read Finally Some Clarity on Fed Leadership.

Lastly, and most importantly, we want to wish everyone a happy and safe Thanksgiving holiday!

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

Posted by lplresearch

Tuesday, November 23, 2021

President Biden officially nominated Chairman Jerome Powell to a second four-year term as Chairman of the Federal Reserve (Fed) and elevated current Fed Governor Lael Brainard to Vice Chair of the Committee. Before the announcement, there was speculation that Brainard could replace Powell as Fed Chair.

We view these nominations as very market friendly. Powell has done a commendable job supporting markets during the COVID-19 shutdowns and we aren’t quite through with the pandemic. We believe stability and leadership continuity is important as we continue to make our way toward the finish line of the COVID-19 pandemic. While Brainard is well qualified to run the Fed, elevating her to Vice Chair recognizes her contributions and potentially puts her in a position to take over the Chair role in four years. Both positions require Congressional approval, and we think both should be confirmed when Congressional hearings conclude sometime over the next few months.

“As we expected, President Biden chose continuity and familiarity with these Fed appointments,” noted LPL Financial Fixed Income Strategist Lawrence Gillum. “Going with Powell over Brainard is what markets were expecting, so we think markets are relieved that Fed leadership uncertainty is now out of the way.”

The knee-jerk reaction in the bond market was interesting in that markets seemingly continue to shift the prospects for interest rate hikes forward. As seen on the LPL Research Chart of the Day, Treasury securities across all maturities sold off with two-year tenors among the most (negatively) impacted. Now, two-year Treasury yields are at the highest level since the pandemic began. Short maturity securities are the most impacted by changes in monetary policy. Moreover, markets are pricing in nearly three rate hikes next year with the first rate hike expected in June, which is much more aggressive than the Fed has indicated.

President Biden still has three open Fed Board of Governor positions to fill, so we’re a long way from knowing for sure how Fed policy may change over the next few years. However, we would expect Biden to select governors on the dovish side of the spectrum. That said, the 2022 voting rotation with regional Fed Presidents may impart a hawkish lean to the FOMC overall, offsetting some of the dovish bias from Biden’s appointments. The rotation replaces three solidly dovish and one strongly hawkish voting members with two strongly hawkish and two solidly hawkish officials. Monetary policy is managed at the national level, so while the regional presidents will no doubt have influence, we continue to think the Fed will be more accommodative than markets are currently expecting. In addition, with the announcements today, leadership at the top of the Fed should be seen as being supportive to the economy and thus supportive for markets.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

Posted by lplresearch

November 19, 2021

On Thursday, November 18, the Conference Board released it October 2021 report detailing the latest reading for the Leading Economic Index (LEI), a composite of ten data series that tend to lead changes in economic activity. Many economic data points are backward-looking, but we pay special attention to the LEI, as it has a forward-looking tilt to it and spans many segments of the economy. The index grew 0.9% month over month, slightly above the consensus estimate of 0.8% and a strong rebound from September’s 0.1%. One-year growth remains over 9%, advancing for the first time since April and indicating low odds of a recession in the next 6 months.

“We may now be in a mid-cycle environment, but Octobers’s LEI number continues to signal the economy is on healthy footing despite Delta variant-related setbacks,” said LPL Financial Chief Investment Strategist Ryan Detrick. “A mid-cycle economy tends to be bumpier than early cycle with more uncertainties on the horizon, but we expect near-term issues to resolve themselves giving way to the next leg of sustained growth.”

As seen in the LPL Chart of the Day, the LEI’s growth rate remains strong over one year trailing, although base effects (rolling off strong numbers) will become more challenging starting in March 2022. Historically, negative year-over-year growth in the LEI has been a warning signal of a recession, and we remain far off from that number.

View enlarged chart.

Eight of the ten component of the index rose in October. The only exceptions were weekly manufacturing hours and consumer expectations for business conditions. Improving weekly unemployment claims, the yield curve, and building permits were the top positive contributors to the index.

The improvement in the LEI is likely an early signal that the negative impact of the summer surge in COVID-19 may be winding down. This is likely primarily from further demand in the most COVID-sensitive segments of the economy, but may also reflect some relief from supply chain disruptions, although we think that supply chain problems will still take some time to resolve.

Looking out into 2022, we anticipate healthy consumer balance sheets and strong wage growth will buoy the U.S. consumer, while businesses will likely invest more heavily in productivity-enhancing capital expenditures to meet that strong demand, potentially leading to above-average economic growth next year.

Much more on our economic outlook for next year is coming soon in our Outlook 2022 publication (ETA early December).

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

https://www.youtube.com/watch?v=Nl8Y5-0SX4s

Posted by lplresearch

Thursday, November 18, 2021

The S&P 500 Information Technology Sector has gained 27% in the past six months, outperforming the broader S&P 500 by more than 10%. But could its run of leadership just be getting started? As shown in the LPL Chart of the Day, the sector just broke out to fresh relative highs for the first time since September 2020.

View enlarged chart.

14 months without a new relative high may not sound like a lot, but that actually represented the longest streak of underperformance for the tech sector since a more than 3-year run that ended in 2015. And while the sector’s breakout does not mean that it will automatically go on another run of multiyear outperformance, we do believe context is important and that investors should recognize that just because technology has had a strong run recently, over the past 14 months the sector has performed just in line with the broader market. We would also note that these are not all-time relative highs for the sector, as it still sits below its early-2000 peak.

“The theme of 2021 has been rotation, rotation, rotation,” said LPL Financial Technical Strategist Scott Brown. “But technology is the only sector to recently hit a 52-week relative high and we believe that sets up a favorable outlook heading into 2022.”

From a fundamental perspective, technology continues to be a key enabler of higher productivity and home to many of the fastest growing companies. Despite topping all sectors with 9% earnings growth in 2020, earnings growth this year is on track to exceed 30%.

So does this mean investors should be shifting all of their assets over to growth stocks again? We don’t necessarily think so, and continue to find opportunities in both growth and value styles. In our proprietary sector trend rankings, technology comes in at #2, trailing only energy and just ahead of financials, both of which sit firmly in the value style and have benefitted from the continued reopening and above trend economic growth. We believe quality growth and more cyclical value companies can both do well in the current environment and remain most negative on defensive sectors such as consumer staples and utilities that have traditionally underperformed during early-to-middle stages of the business cycle.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

Posted by lplresearch

Tuesday, November 16, 2021

One of the more surprising developments in markets over the past six months has been the persistent decline in longer-term Treasury yields. This, coupled with the recent spike in short-term rates as the market has moved to price in rate hikes, has caused most measures of the yield curve to flatten dramatically. This can be seen in the chart below, where every rate inside of 10-years has risen since the end of the first quarter, but every rate 10-years or longer has declined.

So why does this matter? Well the yield curve has been one of the most accurate predictors of past recessions, with the yield curve inverting ahead of every recession since World War II. And while we are still a long way from a full inversion, logically flattening would have to precede any inversion, leading to investor concern.

But the more important question is, will this continue to a full scale inversion? Maybe eventually, we don’t think that is on the near-term horizon when we take a closer look at the charts of the individual rates.

First up, the short end of the curve, where the two year-yield jumped more than 10 basis points last week following another hotter-than-anticipated inflation report. However, despite that move, the yield still sits below its late October highs and is showing signs of exhaustion with a bearish momentum divergence in the bottom panel. We always want to pay attention when price doesn’t confirm or follow the fundamental expectation, and the inability to push through to new highs following that report may be a sign that the market has already priced in enough rate hikes, and suggests 2-year yields may struggle to push higher in the near-term.

But what about the long-end of the curve? Has it stopped going down? We think it has when looking at the yield of the 30-year Treasury bond. After repeatedly holding support just below 1.8% so far in 2021, that interest rate has pushed back up above the key 2% level in recent days. It may be a high bar to expect the 30-year yield to eclipse its 2021 highs near 2.5% anytime soon, but a move up above 2.15% would signal a breakout and point to further steepening of the curve.

The charts above certainly make a technical case for some near-term steepening, but the fundamentals support this as well from where we stand. We believe Fed rate hike expectations have been pulled forward too aggressively, which not only has had the impact of raising short-term rates, but may be a reason for some of the decline in the longer end, as an overly aggressive rate hike campaign could hurt longer-term growth expectations and curb inflation. We expect the yield on the 10-year Treasury to end 2021 near its current levels between 1.5-1.75%, and then to rise modestly in 2022.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

Posted by lplresearch

Thursday, November 11, 2021

When does transitory inflation become non-transitory? That is the question that Federal Reserve (Fed) Chair Jerome Powell is likely to be under increasing pressure to answer after the most recent inflation data surged past economists’ expectations.

The Bureau of Labor Statistics released the October Consumer Price Index (CPI) data yesterday, showing headline CPI climbed 0.9% month-over-month vs. estimates of 0.6%, while core CPI, which excludes volatile food and energy prices, rose 0.6% month-over-month vs. an estimate of 0.4%. The one-year increase in CPI, at 6.2%, is the highest since 1990, reflecting ongoing supply challenges in the face of strong demand, an increase in energy prices, and a rebound in some prices that had been dampened previously by the Delta variant surge.

“The latest CPI numbers surprised to the upside, creating more headaches for the Fed on how, and when, to respond.“ explained LPL Financial Chief Market Strategist Ryan Detrick “It’s looking more and more likely that ‘sticky’ rent inflation, increasing strength in the labor market, continuing supply chain disruptions, and increasing consumer demand could now push the Fed’s ‘transitory’ timeframe well into 2022.”

A big price increase in the housing component of CPI for the second month in a row, up almost 0.5% month-over-month, will be a particular concern for the Fed as this has the potential to be more ‘sticky’ than ‘transitory.’ As shown in the LPL Research Chart of the Day, rents, which make up the largest weight of the overall CPI calculation (41% of core CPI), surged to 15-year highs and could have further to run as the economy continues to open up and the labor market improves (initial jobless claims fell on Wednesday to a pandemic low of 267,000).

Other components of CPI were almost all higher month over month, with energy jumping 4.8%, bringing the yearly increase to 30%. Used car and truck prices, which had actually declined the prior two months, rose 2.5% month over month and had a sizable impact on the overall upside surprise despite having a low overall index weight of just over 3%. Airline fares fell 0.7% month-over-month and were one of the few detractors from the overall number.

While the CPI numbers continue to get a lot of attention and have the potential to be elevated for the short-to-intermediate term, we still believe that longer term inflation will remain reasonably well contained. Restarting the economy after a recession often creates supply disruptions that feed into inflation but the unique COVID-related economic disruptions have contributed even more heavily to a supply driven spike in prices. We continue to believe that as supply and demand are brought back into balance, price pressures should start to subside and that the long term forces limiting inflation, such as globalization and technology, will prove stronger than short-term inflationary pressures we are currently experiencing.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value

Posted by lplresearch

Tuesday, November 9, 2021

The Bipartisan infrastructure bill finally cleared Congress late last week and will be signed into law by President Joe Biden soon. The $1.2 trillion bill will increase new spending towards transportation and “other infrastructure” initiatives by $550 billion, spread out over five years. The law includes $110 billion for roads and bridges, $66 billion for rail projects, $42 billion for ports and airports and $39 billion for public transit. Another $73 billion will go toward updating the power grid; $55 billion is directed to drinking water and lead service lines; and $65 billion slated for broadband infrastructure. The Infrastructure Investment and Jobs Act would mark the largest federal investment in infrastructure in more than 10 years. Importantly, roughly $340 billion would flow to municipal issuers. This is certainly a positive for municipal issuers but, as we stated back on September 28, it is unlikely a catalyst for lower yields (higher prices).

“Demand for tax-exempt debt has been strong this year,” noted LPL Financial Fixed Income Strategist Lawrence Gillum. “Unfortunately, details coming out of Washington D.C. with these infrastructure bills are likely to slow some of that demand. Muni credit fundamentals remain strong though so we don’t think yields move meaningfully higher from these levels.”

The current focus for muni investors is what is, and consequently what is not, included in the Build Back Better bill, also known as the reconciliation bill. While details are still being worked out, unfortunately for muni issuers and investors a number of important provisions that would have increased the credit quality of the market and increased demand (such as the restoration of tax-exempt advance refunding, the creation of a direct-pay bond program, and a higher cap on the bank-qualified issuance limit) were all stripped from the bill under consideration in the House. Additionally, the likely absence of increases in individual tax rates reduces the demand for tax-exempt bonds. Moreover, the bill seemingly includes tax-exempt income as part of the 15% corporate minimum tax rate, which would likely dampen demand from banks and insurance companies, which make up approximately 25% of muni ownership. To say that these developments are disappointing would be a severe understatement. And, as shown in the LPL Research Chart of the Day, AAA muni yields relative to 10-year Treasury yields continue to move higher recently largely, in our view, because of these disappointing legislative developments for muni investors.

It hasn’t been all bad news for muni issuers recently. A bill called the State, Local, Tribal, and Territorial Fiscal Recovery, Infrastructure, and Disaster Relief Flexibility Act, which began as an amendment to the bipartisan infrastructure plan before evolving into its own legislation, provides municipalities with flexibility in how funds from the American Rescue Plan Act could be spent. State and local governments would be allowed to use a portion of their unspent COVID-19 relief funds for infrastructure and disaster relief under a bipartisan bill the Senate passed unanimously recently.

While performance for the municipal bond market is still broadly positive for the year (as per the Bloomberg Municipal Bond index), the last three months have been challenging. After what was a strong technical tailwind for the market during the summer months, the index has posted three negative monthly returns in a row; the first three-month losing streak since 2016. Demand for muni issuance remains strong however and municipal bond funds have seen inflows in 76 of the past 77 weeks, totaling a record $153.6 billion. After 44 weeks, the pace of fund inflows remains the fastest on record, and the current year-to-date inflow of $92.1 billion would be the second highest among full-year calendar inflows since the inception of the data in 1992. With the economy continuing to recover and with state and local tax receipts higher than expected, the tax-exempt market should remain well bid through the rest of the year.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

• Not Insured by FDIC/NCUA or Any Other Government Agency
• Not Bank/Credit Union Guaranteed
• Not Bank/Credit Union Deposits or Obligations
• May Lose Value