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Behind the Numbers, with Lincoln Anderson

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LPL Financial’s chief economist is over-allocated to stocks “because we’re at the end of a 25-year rally in bonds, and yields have come down to what we consider to be historically low. We don’t think there’s good return potential there that justifies exposure to bonds.” Anderson recommends overweighting technology, certain parts of healthcare, and favors U.S. over international equities. As for risks to his forecast, he sites energy prices and the dollar exchange rate. “If the [dollar exchange] rate resumes a downward move, that would really hurt the inflation outlook and it will scare away international investors,” he notes. “And at these kinds of energy prices, I’d say the outlook for the second half is a dead, flat economy.”