At Winthrop, we help our clients live life in the moment while boldly exploring and imagining possibilities for their future. Our approach enables us to explore every aspect of your life so that we can design a big-picture plan and investment solutions that balance practicality with opportunity.
Whoever you are, and wherever you are on your journey, our multi-generational team has all the tools and experience to help you pursue your financial goals—and live your life to the fullest.
From fast-growing startups and closely held family businesses to multi-generational enterprises, we will help empower you to operate more efficiently day-to-day, while laying a foundation for navigating the future.
We work closely and collaboratively with our endowment and non-profit clients to provide investment programs and hands-on portfolio management services pursuing global opportunities while seeking to ensure alignment with key business objectives.
We’re committed to seeking out and sharing the trends influencing markets and the outlooks that might inform our investment approach. In an industry like ours, being open to multiple viewpoints and fresh perspectives is a critical part of how we add value, and help our clients imagine all the possibilities.
In the world of finance, things change fast and there’s always more to learn. We’ve created a series of tools that will help you stay educated and keep you informed about the things that matter most.
Updates | October 12, 2018
The volatility that is often associated with the month of October has arrived with the market sell-off over the last two days. Experiencing market declines and increased volatility can be unnerving for any investor. However, if we can take a step back and see the big picture, that the market and economic environment remain positive, it can be easier to weather these challenging periods.
During market ups and downs, it’s important to focus on the fundamentals. And right now, economic and market fundamentals are strong. The U.S. economy is in excellent shape. Consumer spending is growing solidly, consumer and business confidence is high, the job market is quite strong, manufacturing surveys are near record levels, and by historical standards, interest rates are still fairly low.
Interest rates are dominating the headlines right now as a driving force in this current period of market volatility. The positive economic backdrop, however, provides valuable context. When interest rates are rising because of better economic growth, stocks historically do well over time. That appears to be the case now. However, when interest rates spike rapidly, as they have done recently, market volatility increases.
Equity market fundamentals remain solid due to strong earnings growth. Consensus estimates according to FactSet are calling for a third consecutive quarter of 20%-plus growth in earnings for S&P 500 companies, caused by strong economic growth and tax reform. In addition, although uncertainty leading up to midterm elections can make investors uneasy, stocks historically do very well following the midterms once there is clarity from the results.
Trade tensions are another factor capturing investor attention. The US and China have both implemented tariffs with no new negotiations scheduled at this time. The situation remains very fluid as there is a constant news stream documenting the latest back-and-forth between the two sides. Although it looks like the situation is at an impasse, both sides have a lot to lose economically from a trade war.
Even with rising rates, trade tensions, and midterm election concerns, it’s also important to remember that pullbacks (5-10% drops) such as these are normal. Even though stocks tend to average a 7-8% annual gain, there tend to be about three pullbacks and at least one correction of 10% or more each year (data back to 1950). We experienced both earlier this year, in February and April, and we could have more before the end of the year.
As always, we remind everyone to remain realistic with their expectations and prevent emotional or reactionary behavior. We encourage you to stay calm during this latest bout of volatility and focus on your long-term goals and objectives.
 LPL Weekly Market Commentary from 09/24/18
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
All performance referenced is historical and is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Economic forecasts set forth may not develop as predicted.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1928 incorporates the performance of predecessor index, the S&P 90.
This research material has been prepared by LPL Financial LLC.