Stocks Enjoy Holiday Cheer
The LPL Strategic & Tactical Asset Allocation Committee (STAAC) determines the firm’s investment outlook and asset allocation that helps define LPL Research’s investment models and overall strategic and tactical investment thinking and guidance. The committee is chaired by the chief investment officer and includes investment specialists from multiple investment disciplines and areas of focus. The STAAC meets weekly to closely monitor all global economic and capital markets conditions to ensure that all the latest information is being digested and incorporated into its investment thought.
Key changes from November report:
- No changes from the November report.
Investment Takeaways
Stocks rebounded in November, marking the S&P 500’s best month of 2024. Equities were lifted by a quick election outcome and prospects for deregulation and lower taxes from the incoming administration, as well as the removal of election overhang on sentiment. Earnings reports were highlighted by strong results from the artificial intelligence (AI) bellwether, NVIDIA (NVDA), while positive results and guidance from Walmart (WMT) boosted the consumer resilience theme amid mixed retail results. Stocks continued to set record highs entering the seasonally favorable month of December, with markets noting a promising start to the holiday shopping season.
Within fixed income markets, Treasury yields were lower across the curve in November due to strong demand for higher yields after the October selloff. Moreover, markets had been pricing in the prospects of higher budget deficits into perpetuity, but with the recent nomination of Scott Bessent for Treasury Secretary the market seems to believe he will be a moderating voice within the Trump administration. The 0.20% decrease in the 10-year Treasury yield caused positive returns for most fixed income sectors with the broad index (Bloomberg Aggregate Bond Index) higher by 1.06% in November. High quality fixed income sectors, agency mortgage-backed securities (MBS), and investment grade corporates specifically, outperformed during the month.
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IMPORTANT DISCLOSURES
Investing in foreign and emerging markets securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. Precious metal investing involves greater fluctuation and potential for losses.
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.
Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
All index data from FactSet.
The Strategic and Tactical Asset Allocation Committee (STAAC) is a division of LPL Research.
Tracking #667284 / #667286(Exp. 12/2025)