2016 was a rather boring year for the markets. That is until the surprising November election results left Americans thinking “Now What?”
It was a big first week of 2017 for the weather and for the U.S. markets. As temps dropped and snow hit nearly every state in the union, stocks only wanted to move into the clouds. The numbers showed that it was a different type of week with growth, biotech and FANG stocks leading the week one charge.
So much for the Santa Claus rally. The red sled never even left the garage. Why were the last two weeks of 2016 a dud?
As we head into the final stretch of 2016, the U.S. dollar has taken control of the markets. As the incoming Trump administration continues to promise fiscal spending and tax cuts, the Fed is now positioning to do a bit more tightening—all while the U.S. and global economic datapoints move higher.
Well that was unexpected. I don't think anyone had Hillary Clinton winning Minnesota by ONLY 1.4%, much less the GOP sweeping two branches of the U.S. Government and looking to line up the third branch (i.e., Supreme Court). So now what? What I wrote on Sunday still holds true today: "the markets like nothing more than certainty."