Lately we’ve seen two things swirling that some investors think could hurt them down the road. The idea that higher yields and rate hikes are bad is all over the place, but it all might not be so simple. In fact, looking back at history, neither are necessarily true.

First up, the 10-year Treasury yield has soared to start this year, with many high flying tech stocks falling as a result. But is this bad for all stocks? “Higher yields usually mean the economy is growing, not slowing,” explained LPL Chief Market Strategist Ryan Detrick. “For this reason, when yields go higher, stocks tend to do quite well, q

Corporate America has been on quite a run. Coming into 2021, S&P 500 Index companies were expected to generate less than $170 in earnings per share. As 2022 begins, it looks like that number may end up higher than the latest LPL Research estimate of $205, one of the biggest earnings upside surprises ever and a big reason why stocks did so well last year. But 2021 earnings are not yet fully in the books. We have one more quarter to go, which we preview here.

Big Banks Kick Us Off

Fourth quarter earnings season kicks off this week with earnings from several big financials, including BlackRock, Citigroup, JPMorgan Chase, a

Index Performance

U.S. and International Equities

Equities finished December on a strong note as both the S&P 500 Index and the Dow Industrials rose over 4%. These markets took in stride higher COVID-19 cases, inflation concerns, and the Federal Reserve’s (Fed) evolved hawkish sentiment. The growth-laden Nasdaq Composite lagged but managed a gain of 0.7%.

Developed international market (MSCI EAFE) and emerging market (MSCI EM) stocks reversed course from November in December, finishing the month higher. Amid concerns about an increase in COVID-19 rates worldwide, China property giant Ever

In many ways, 2021 was a typical year for markets, but it also reinforced some basic market lessons that are hard to learn, even if they are not new. As we launch into the New Year, we’re highlighting three 2021 market lessons that we think may matter for 2022: 1) equity valuations are a poor timing mechanism, 2) structural forces have a large influence on interest rates and may keep them relatively low, and 3) politics and markets don’t mix.

Welcome to the New Year for markets, when year-to-date returns all reset to 0% and the year ahead is still a blank slate. No doubt, 2022 will provide its usual mix of ordinary ma