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.
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