General Market Commentary as of December 31, 2017
U.S. Stocks continued their climb in the fourth quarter as the tax bill became reality and as generally upbeat economic data gave the green light to the Fed to raise rates again causing a pull back in bonds.
Outlook
The outlook for stocks remains positive although muted versus last year. Almost all the impact of the fiscal package is hitting the demand side of the economy, which will be a temporary jolt to growth. Concerns over midterm elections, a slow down in Chinese growth and the ever-present political risk posed by the Middle East and North Korea could cause problems we don’t foresee at this time.
Current Shift
The global economy is experiencing a relatively steady, synchronized expansion amid low inflation, with low risk of recession. The current shift toward tighter global monetary policy may boost market volatility, which underscores the importance of diversification.
Bonds on the other hand look to be flat to negative for the year, unless a “Black Swan” appears and causes a flight to safety.
| Tot Return | 3-MO* | 12-MO* | 3-Year* | 5-Year* | Closing Value |
|---|---|---|---|---|---|
| S&P 500 | 6.12% | 19.42% | 9.10% | 13.39% | 2,673.61 |
| Dow Jones Industrial Average | 10.33% | 25.08% | 11.52% | 13.53% | 24,719.22 |
| NASDAQ Composite | 6.27% | 28.24% | 13.38% | 17.98% | 6,903.39 |
Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.
All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.
