It would be difficult to describe 2016 as anything but unpredictable. For all of the year’s ups and downs, investors head into 2017 with more optimism than we’ve seen in a number of years. The University of Michigan Index of Consumer Sentiment ended the year at 98.2 up 6% for the year leading to the highest level of the Sentiment Index since January 2004. An all-time record number of consumers (18%) spontaneously mentioned the expected favorable impact of Trump's policies on the economy. The prior peak (9%) was recorded in 1981 when Reagan took office. These “animal spirit” forces helped drive the S&P 500 approximately 6% higher from election day through year-end. Investors anticipate that friendlier fiscal policies will provide a shot in the arm to sluggish growth.
The information contained on this website is not intended to be used as the sole basis of investment decisions and is not a recommendation nor a solicitation to buy or sell any securities or investment. It is intended to be informational and educational. The information provided should be used as a general guide to investment performance. Past performance is no indication or guarantee of future results.
Copyright © 2020. All rights reserved.