Will The Bull Market Continue ... The Gensler Group Hosts Their Best Annual Symposium Yet - Coronado Eagle & Journal | Coronado News | Coronado Island News: Coronado Home And Business

Will The Bull Market Continue ... The Gensler Group Hosts Their Best Annual Symposium Yet

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Posted: Friday, August 9, 2019 11:12 am

The Gensler Group recently hosted their 11th annual Wealth Management Symposium featuring Burt White, Chief Investment Officer of LPL Financial. White spoke on the topic of “Why The Bull Market Will Continue.”

We are in the midst of the longest economic expansion since the 1950’s and Bull markets don’t die of old age, they die from excesses.

A decade ago, we experienced the biggest recession in modern times, followed by the historically slowest recovery. Typically, bigger economic downturns are followed by larger percentage gain recoveries and vice versa but “the U.S. economy hasn’t yet lived up to its true potential,” explained White. The economy has been strong, despite the fact that productivity is at a 35 year low and we’re still experiencing Gross Domestic Product (GDP) growth of 2-3%. White believes that once we start to achieve higher productivity numbers from our work force, GDP will be more robust as productivity is an essential part of the GDP growth equation.

Additionally, White spoke about the Federal Reserve and quantitative easing which increased the countries balance sheet from around $750 billion to $4.5 trillion. To put “trillion” into a time perspective; if we were to go back in time a million seconds, it would be 11 days earlier. If we were to go back in time a trillion seconds, it would be 30 B.C.

The Fed will likely maintain lower interest rates for the foreseeable future, providing lower borrowing costs for individuals and companies. Although, “Maintaining low interest rates for the long term is not healthy for the economy,” White points out.

Overall, the economy is healthy. Consumer confidence remains at a 17 year high, unemployment is at 50-year low and inflation is benign. Investors are concerned about market highs as evidenced by the record amounts of cash on the side-lines. In White’s presentation he showed that back in 2007, 65% of American adults invested in the stock market. Today, 52% of American adults are invested in the stock market while 49% of American adults play the lottery.* As for tariffs, there will be meaningful impact to some industries but the overall U.S. economy won’t be impacted in a meaningful way.

*LPL Research, Gallup, 2016

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The Gensler Group is a boutique Wealth Management Firm serving the community since 1995. For more information visit www.GenslerGroup.Com or schedule an appointment with one of our Certified Financial Planners by calling (619) 554-1300.

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