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A look back at 2016: What did it mean for your portfolio?

Posted by Chad R. O'Connell AIF QPFC

Jan 20, 2017 3:55:22 PM

With Weston Wellington, Dimensional Fund Advisors LP.

Every year brings its share of surprises. But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000?

The answer is very few—a lesson that investors would be wise to remember.

At year-end 2015, financial optimists seemed in short supply. Not one of the nine investment strategists participating in the January 2016 Barron’s Roundtable expected an above-average year for stocks. Six expected US market returns to be flat or negative, while the remaining three predicted returns in single digits at best. Prospects for global markets appeared no better, according to this group, and two panelists were sufficiently gloomy to recommend shorting exchange-traded emerging markets index funds.1

Results in early January 2016 appeared to confirm the pessimists’ viewpoint as markets fell sharply around the world; the S&P 500 Index fell 8% over the first 10 trading sessions alone. The 8.25% loss for the Dow Jones Industrial Average over this period was the biggest such drop throughout the 120-year history of that index.2 For fans of the so-called January Indicator, the outlook was grim.

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Topics: portfolio, markets, election, 2016 financial markets



New Market Highs and Positive Expected Returns

Posted by Chad R. O'Connell AIF QPFC

Jan 12, 2017 12:10:59 PM

There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500.

When markets hit new highs, is that an indication that it’s time for investors to cash out? History tells us that a market index being at an all-time high generally does not provide actionable information for investors. For evidence, we can look at the S&P 500 Index for the better part of the last century.

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Topics: wealth management, S&P500, stock markets, election, Dow Jones, volatility, 2017, return on investment



A Post Election Look at the Markets

Posted by Pat Bohen

Jan 3, 2017 4:30:58 PM

Happy New Year!  Patrick Bohen provided his insights to David Robinson of The Buffalo News for a New Year's Day article covering what 2017 may hold in store for the stock market. 

What will 2017 bring for stocks? Local investment advisers make predictions.

By

As Donald Trump goes, so goes the stock market.

That, in a nutshell, is how local investment advisers see 2017 shaping up.

The president-elect, if he’s able to deliver on some of his pro-business tax and regulation promises, could be a powerful force on Wall Street in 2017. If he can’t, Trump’s failure to cut taxes, ease regulations could lead to widespread disappointment among investors who now are counting on his promises becoming reality.

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Topics: wealth management, new year, Dow, NYSE, NASDAQ, stock markets, current events, election





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