Monday, January 16th-Markets and our Offices Closed
Monday is Martin Luther King Day, and the U.S financial markets will be closed as well as our office. It is also a banking holiday, so any withdrawals from accounts at the Trust Company of America will be delayed one day. We will be open on Tuesday morning for business as usual.
Time for Personal Review:
If you have not yet done so, now is a great time to schedule your individual review of both your investment portfolio and risk as well as your personal long term financial plan. Call us today to reserve the day and time that best fits your schedule for your appointment, either in person or by phone!
The Markets:
The U.S stock indices turned in mixed results last week, but for the calendar year of 2017, they are in positive territory. The Dow Jones Industrial Average is now up .62% for the first two weeks of January, while the broader based Standard & Poor’s stock index is 1.6% higher than the start of the New Year. (MarketWatch)
Interest rates have eased slightly so far this year, with the yield for the 10 year U.S. Treasury ending at 2.40% compared to 2.45% at the end of 2016. (U.S. Treasury) The national average for a 30-year fixed rate mortgage is now at 3.97%, while the 15 year ended Friday at 3.13%. (Bankrate.com)
We continue to be pleased with the overall results for client portfolios relative to risk so far in 2017. Our equity/stock holdings continue to do well after a strong 2017. We still don’t see any major risk of recession in the near term, and that should continue to bode well for stocks in general in the weeks ahead. Earnings for the 4th quarter in in full swing, and based on those results, stocks should perform accordingly. We will keep you advised.
Inauguration Day, a New President and Stocks
Inauguration Day is January 20t, and Donald Trump will be sworn in as the next president of the United States. Utmost on the minds of investors and their portfolios is a simple question, “How might stocks perform under a Trump presidency?”
Historically, since 1929, the median return for the stock market under Democratic presidents has been 27.7% and the median return during Republican administrations has been 27.3%. It’s an insignificant difference. (St. Louis Federal Reserve)
The data suggest that investors look past their personal biases – who they voted for – and emphasize economic performance and corporate profits.
The post-election rally has been fueled by rising business and consumer confidence tied to expectations of corporate tax reform, regulatory relief, renewed interest in energy production, and infrastructure spending.
Fast-forward to last Wednesday’s press conference by the president-elect. There were few policy specifics. Instead, there was a ramp-up in the populist rhetoric and protectionism that marked the campaign. Moreover, there are new questions as to how Trump and Congress will proceed with corporate tax reform. Not surprisingly, we saw some uncertainty in stocks.
Ultimately, investors will look to the economy and earnings. In the same vein, how Trump frames the debate could also have short-term ramifications.
We truly appreciate the privilege to serve each and every one of you and look forward to working with you in the years to come.
God Bless,
Your TEAM at F.I.G. Financial Advisory Services, Inc.
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1 The Dow Jones Industrials Average is an unmanaged index of 30 major companies which cannot be invested into directly. Past performance does not guarantee future results.
3 The S&P 500 Index is an unmanaged index of 500 larger companies which cannot be invested into directly. Past performance does not guarantee future results
Looming Risks Overlooked