I can hardly believe it, but we’re in the final trading days of 2016. It has been quite an eventful year for the market; the Dow and S&P 500 have had their fair share of ups and downs. So let’s take a moment to review it all.
Despite a bumpy start in January and February, and the post-Brexit pullback in mid-June, it’s looking like the benchmark indices will finish the year with double-digit (or close to double-digit gains). From April through November, stocks continued to creep higher, bolstered by the Fed’s accomodative policies. On that note, the Fed ended up raising rates just one time in December, despite its predictions for several rate increases.
Of course, the big catalyst was the November Presidential Election. As we all know, Donald Trump won in a stunning victory over Hillary Clinton, sparking an incredible short-covering rally that benefitted the Materials, Energy, Financials and Industrials sectors. However, I don’t necessarily recommend that you load up on these sectors just yet; instead, I still advocate a stock picking strategy, for reasons that I discussed here.
2016 was a historic year on Wall Street, and 2017 will be an eventful year under President-Elect Trump. If you’re looking to invest in stocks next year, make sure you continue to run all potential buys through Portfolio Grader, at the very least. For those of you who subscribe to one of my premium newsletters, I’ll continue to guide you around any trouble spots in the market.
Just as a general reminder, the markets will be closed on Monday, January 2. My team and I will be starting the holiday weekend a little early, so there won’t be a blog for tomorrow. But come Tuesday morning, my team and I will be back bright and early to bring you your weekly stock upgrades and downgrades.
Whatever your plans are, I hope you have a happy and safe New Year and I’ll see you in 2017!