July, 2013 Archives


Mid-Year Outlook 2013: Converging on the Path of Least Resistance

by admin in Global Investments

The performance of the markets is likely to converge in the second half of the year on a path that likely holds modest gains*. The return of volatility will also be a key characteristic of the second half as markets follow a path with ups and downs.

In LPL Financial’s Outlook 2013: The Path of Least Resistance, published in November of 2012, we laid out three paths the markets could follow in 2013 as the path of least resistance: bull, bear, and base.

  • On the bull path, obstacles are overcome and investors embrace market opportunities and drive up valuations.
  • On the bear path, fiscal policy results in a much weaker economic backdrop and markets plunge.
  • On the base path, the path we deemed most likely to emerge, growth in the economy and earnings remains below average, and the
    challenged markets produce modest gains with a lot of volatility.

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