Running of the Bulls Part ll?
Last year the major indexes (S&P 500 +19%, Dow Jones +25%, NASDAQ +28%) experienced stellar returns . Looking back, these types of returns are the result of what is commonly known as a ‘Bull Market’. Can we expect more of the same in 2018? I believe the answer is ‘yes’ due to the following reasons:
- The U.S. and global economic data point to continued expansion.
- Interest rates will most likely continue to increase this year but are still historically very low.
- U.S. Employment is almost at full capacity, which should lead to higher wages and more consumption of goods and services by consumers.
- Tax reform should lead to corporation repatriating billions of dollars of overseas cash and investing that cash into the economy.
- The ’07 – ’08 financial crisis ‘hangover’ seems to be over. Investor ‘confidence’ is high.
A good New Year’s resolution would be to remain committed to our investment portfolios, as we believe it is shaping up to be another stellar year for the markets.
Happy New Year.
Sincerely,
Mike
