Bonds: Short-lived and shallow yield curve inversions are not worrisome in our view, and we continue to emphasize a blend of high-quality intermediate bonds in tactically oriented portfolios.
Stocks: We look for solid U.S. equities performance to continue, and we see more potential upside in emerging markets than developed international markets. In the U.S., we continue to prefer large cap stocks (over small cap stocks), cyclical stocks (over value stocks), and a balance of growth and value styles for appropriate strategies.
John Lynch is chief investment strategist for LPL Financial.