It’s our last stock market recap of the year! And what a year it has been.
A month ago in my last recap, I mentioned that although the market was already seeing record highs, it would go even higher and hit 24,000. And it has! Reaching 24,300 and higher! This last month also saw a tax cut. These are all great signs!
The Dow Forecast for 2018
Over the next two years, we’re confident that the Dow will reach 30,000. Through this, though, we will see corrections. Since 2010, there have been 18 corrections, and these have all been very healthy for the market.
So what can you expect from the next 24 months? We estimate that we’ll see a 30,000 Dow. However, that doesn’t mean that we’re not going to see any corrections. Corrections are healthy.
Additionally, the new tax plan will be good for US corporations, leveling the playing field for us and making us very competitive overseas.
Technology and Financial Market Update
If you’ve been keeping up with our regular updates, you know that technology has been our top performer, year to date. However, we’re slowly seeing a move out of technology. That money is headed straight to financials.
The reason financials will be a strong market next year is due to 2 changes:
- Tax cuts
- Higher interest rates
Thanks for a Great Year
From all of us here at Sloy, Dahl & Holst, we wish you a happy holiday and great New Year. We’re looking forward to our first market update of 2018!
– Ron Sloy