LPL Does Not Own a Bank – and What Happened at Silicon Valley Bank
After my last email on Silicon Valley Bank (SVB), I received several questions inquiring more specifically why SVB failed (and why are the other banks such a concern). Before addressing that, I want to emphasize that unlike some other broker-dealers, LPL does not own a bank. Any banking services offered through LPL are offered through contractual arrangements with outside banks. Therefore, LPL does not have the same risk exposure that other
Volatility Fatigue…and Now a Bank Failure
The S&P 500 peaked almost 15 months ago and still remains nearly 20% below that peak. Moreover, the bear market in the more aggressive growth stocks began 25 months ago in February of 2021. Given those facts, you’re forgiven if you’re starting to feel some “volatility fatigue”. And now the 16th largest bank in the country failed. Where do things go from here? The honest answer is that it’s unknowable where
Always Stick to Principles, Especially During Tough Times
As we all know, 2022 was a tough one for investors. Both stocks and bonds declined significantly. In fact, it was the worst year ever recorded for bonds. When times get tough, the statistics tell us investors are prone to making more mistakes due to emotions. It’s therefore helpful to remember what guides us in our financial planning and investing decisions to stay patient and disciplined. Here are the general principles
Your 2022/2023 Year-End Guide
To ease some of the burdens of the upcoming tax season, this helpful guide will help you become familiar with important dates, deadlines, challenges, and opportunities that may come up toward the end of the year. Of course, if you have additional questions about anything included in this guide, please call (303)647-1220. We look forward to working with you this tax season! Download Your Guide Here
The Jury is Still Out on Mr. Market
As we’ve been discussing in this blog since the Spring, the Federal Reserve’s hiking of interest rates will result in one of three outcomes: a recession (perhaps a deep one), stagflation (combination of high inflation and low or even negative growth), or a “soft landing” (the economy avoids a recession while inflation comes down meaningfully). Here we are many months later, and the jury is still out deliberating - we simply
Stocks Had Their Worst Start Since 1970…But My Inner Optimist is Waking Up
“What's glaringly missing in the headlines is that in 1970 the S&P 500 lost 21% in the first six months but recovered 27% in the second half. And that's not the only example of significant second half turnarounds.” - LPL Research Note to advisors on 6/30/2022. Perhaps you’ve heard it 11 or 100 times in the last week or two: the first six months of 2022 was the worst since 1970.
Another Bad Inflation Number…and Why You Shouldn’t Care
Last week, the government released the May inflation report. The news wasn’t good – and markets sold off. On top of that, we are apparently in one collective bad mood, at least according to the well-respected Michigan Consumer Sentiment survey. The lowest sentiment number ever recorded was just released in the most recent survey.[1] It’s hard to blame consumers when there is a gas “scoreboard” broadcasting the pain on street corners everywhere and, like the