If you remember, last month we talked about how well the market has done this year. The good news is that the market is headed even higher!
November, December, and January are three of the best months of the year for the market. Between now and then, we’re going to get a tax cut. This will drive corporate earnings higher, and drive the market even higher.
Let’s take a quick review of the state of the market.
Right now, the global economy is doing better. The US is doing better. Consumer confidence is at an all-time high. Your home prices are the best you’ve seen in over a decade. We’re in a good spot.
Plus, interest rates are at a historic low. We will see another interest rate bump in December. If you’ll remember, we slated for 3 bumps this year, and this will be our third and final one. Looking ahead to 2017, we expect to see 4 interest rate bumps.
Remember back in January when we said that the market was going to close the year at 23,000? Well, as of today, for the first time in history, the market crossed 23,500. I would not be surprised to see this tack on another 2-3% and reach 24,000 or more by the end of the year.
What can we expect next year?
We are expecting another great year. We’ll see some pull-back, but that will be a healthy thing for the market. We also expect that in the next two years, we’ll have the greatest runs we’ve ever seen in market history.
What are our favorite stocks?
Here at Sloy, Dahl, & Holst, we really like the emerging markets better than we like the US. We also continue to like Technology (our technology fund is up almost 50% year-to-date!). We especially like Apple stock.
Additionally, we’re overweighted in Financials. As interest rates go up, the financials are going to go up as well. This is a good spot to be in.
It’s been a great year!
From all of us here at Sloy, Dahl & Holst, I want to wish you a very happy holiday and thank you for a great year! This is a year I don’t think we’ll forget in a long time. Thank you so much for your trust and continued support.