2011 Will Be a “Middle-of-the-Road” Year

Leave a comment

Call it déjà vu.  Jeffrey Kleintop, LPL’s chief market strategist, kicked off IMCA’s practice management conference today in Vail, Colo., with an economic outlook for 2011. Perhaps not surprisingly, it looks and sounds a lot like 2010—modest economic growth of about 3 percent and stocks posting single-digit gains accompanied by high volatility.

“The key to success in 2010 was being tactical,” he said, noting that the strategy for success in 2011 is similar.

Kleintop says business leaders, policymakers and investors will play important roles in shaping the economic environment in 2011. Key prognostications include:

  • The job market will stage a comeback
  • Policymakers will deliver economic stimulus
  • Investors will play it safe
  • Currencies will influence returns

“After years of extremes (2008–2010) in the economy and markets, 2011 is likely to be a middle-of-the-road year as the economy and markets are range-bound,” according to Kleintop.

Kleintop also predicts that we’ll see job growth double the pace we saw in 2010, with about 200,000 new jobs created each month—just enough to see the unemployment rate improve. But, he says, we’re still five to six years away from the job market fully recovering to where it was pre-meltdown.

Carly Schulaka
Managing Editor
Practice Management Solutions
Financial Planning Association
Denver, CO

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s