Why Employees of Lincoln National Should Consider Value Stocks for Their Investment Strategy

Healthcare Provider Update: Healthcare Provider for Lincoln National: Lincoln National Corporation does not directly provide healthcare services. Instead, it operates as a financial services company that offers various insurance and investment solutions. For healthcare coverage, Lincoln National collaborates with health insurance providers like Aetna for its employee benefits and health-related products. Potential Healthcare Cost Increases in 2026: Healthcare costs are projected to rise significantly in 2026, driven by factors such as inflation in medical care and large anticipated increases from major insurers. Premiums for Affordable Care Act (ACA) marketplace plans could soar by over 20% on average, with some states facing hikes that exceed 60%. The potential expiration of enhanced premium subsidies will further exacerbate the situation, leading to a staggering increase of over 75% in out-of-pocket costs for many enrollees. As a result, consumers will need to navigate these challenges carefully, focusing on proactive strategies to manage their healthcare expenses effectively. Click here to learn more

The latest actions and statements from the Federal Reserve, particularly Jerome Powell’s hints at possible interest rate cuts in September, have infused hope into the stock market. This trend is expected to continue until Friday, fostering stocks that have recently exhibited remarkable performance, including those that may impact Lincoln National Employee's portfolio.

Value vs. Growth Stocks: A Lincoln National Perspective

The Russell 1000 Value Index outperformed the Russell 1000 Growth Index in July by the widest margin since March 2001. Over a 10-year span, only three times in the past 90 years have value stocks experienced losses.

Currently, the Russell 1000 Growth Index trades at 28.8 times future earnings, while the Russell 1000 Value Index trades at 16.1 times. This significant disparity in valuation makes value stocks relatively affordable compared to growth stocks, a scenario observed only 5% of the time since 1995. Lincoln National employees may find this trend particularly relevant when evaluating the performance of their own stocks in the context of broader market trends.

Hoeft notes that during periods when the value rate change exceeds the 80th percentile, value stocks have outperformed growth stocks by 12.1% annually over a five-year period. This highlights the importance of a long-term investment horizon for Lincoln National employees, as the predictive power of relative valuation becomes more pronounced over longer periods.

Investment Strategies and Sector Analysis for Lincoln National Employees

Dodge & Cox maintain a value-focused approach, without completely withdrawing from tech assets. The main shareholders of their Stock Fund are Alphabet and Microsoft, although their positions in the S&P 500 are more modest. For Lincoln National employees, understanding that a long-term investment strategy should not be limited to low-cost assets is crucial. It’s essential to have a deep understanding of intangibles and other sources of value that do not appear directly on the balances, just as Lincoln National evaluates its own assets and investments.

The fund’s main activities are in financial sectors, such as Charles Schwab and Wells Fargo, as well as health and industry. This diverse approach ensures balanced exposure to different market segments, potentially reducing risks associated with sector crises, something Lincoln Nationalmay also consider in its financial strategies.

The Market and Key Indicators Affecting Lincoln National

U.S. stock futures, particularly the S&P 500 and Nasdaq Composite, saw a positive trend at the dawn of Friday, supported by solid operational data from Meta and the favorable outcomes of recent Federal Reserve decisions. Despite this, the pound sterling experienced a decline against the dollar following the Bank of England's first rate cut in four years, which could have implications for Lincoln National's global operations and financial planning.

Here’s a snapshot of key asset performance metrics relevant to Lincoln National employees:

• S&P 500 : 5222.3 (+1.7% 5-day Change, -0.27% 1 Month Change, +15.78% YTD, +22.35% One Year Change)

• Nasdaq Composite : 17599.40 (+1.48% 5-day Change, -3.24% 1 Month Change, +17.24% YTD, +25.95% One Year Change)

• 10-year Treasury : 4.06 (-18.70 5-day Change, -30.40 1 Month Change, +17.91 YTD, -11.92 One Year Change)

• Gold : 2475.9 (+4.76% 5-day Change, +4.67% 1 Month Change, +19.50% YTD, +25.72% One Year Change)

• Petroleum : 78.49 (+0.18% 5-day Change, -6.11% 1 Month Change, +10.04% YTD, -3.95% One Year Change)

Earnings Reports and Economic Indicators Impacting Lincoln National Employees

Meta Platforms has generated strong earnings and revenue, leading to a rise in its stock. Tech giants such as Apple, Amazon, and Intel are prepared to announce their results after the market closes, which could indirectly impact Lincoln National employees tech-related investments.

Additionally, Moderna has seen a significant drop in its stock as the biotech company reduced its sales forecast for 2024. Moreover, the initial jobless claims rose by 14,000 to 249,000 for the week ending July 27, on the eve of the expected ISM manufacturing announcement and the crucial non-farm payroll outcome on Friday. These economic indicators could influence broader market strategies and employee financial planning.

European Market Studies and Lincoln National’s Global Reach

The economic situation in Europe is mixed, with peripheral regions outperforming major nations such as Germany and France. This divergence is attributed to the latter's struggle against stricter European Central Bank policies and structural challenges. Dario Perkins, CEO of Global Macro at TS Lombard, points out that Germany's reliance on China and Russia could lead to deindustrialization risks, while France faces potential debt issues. Any operations Lincoln National does in these regions might need to account for these economic dynamics.

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Popular in the Market: Stocks Relevant to Lincoln National

Here are the tickers that are the most actively traded as of 6 a.m. Eastern, some of which might be of interest to Lincoln National employees:

• NVDA : Nvidia

• TSLA : Tesla

• META : Meta

• GME : GameStop

• TSM : Taiwan Semiconductor Manufacturing

• AMD : Advanced Micro Devices

• AAPL : Apple

• MSFT : Microsoft

• AMZN : Amazon.com

• AMC : AMC Entertainment

In Conclusion

The investment landscape is constantly evolving, influenced by economic indicators, market performance, and strategic decisions made by major companies and policymakers. For Lincoln National employees, a long-term vision, sector diversification, and keen attention to valuation gaps can help navigate the complexities of market trends, ensuring informed and strategic investment choices.

Since 1995, value stocks have consistently outperformed growth stocks when their value disparity reaches current levels, often by significant margins. According to historical data, under these conditions, value stocks have posted an annual average rise of 12.1% over growth stocks over a five-year period (Source: MarketWatch, July 2023). This trend highlights the potential for significant long-term profits in value investing, underscoring the importance of strategic asset allocation during periods of high valuation disparities, a strategy Lincoln National employees may find particularly beneficial.