With the new year coming, investors are nervously wondering whether the bull market, which has been around for almost nine years, can continue. The old adage says that in January, the rest of the year is the same. So Lewis Walker, a financial planning and investment strategist at Capital Insight Group in Peachtree Corners, Georgia, tells us why it might be one year this year, but also what to pay attention to:
The big surprise for 2016 is the election of Donald Trump. The stock market took off despite his election as the stock market plunged. Trump bump continues in 2017, and experts once again announced the year as “one of the surprises.”
It is estimated that the economy will be healthy in 2018. The numbers look good. If the stock market has a good return this year, it should not be a surprise. Surprisingly, the downside performance. We are not predicting this, but the comments made by Sam Stovall, CFRA’s chief equity strategist, make sense: “One could argue that investors should expect more in 2018 – more Volatility, less rewards. ”
The end of 2017 paved the way for optimism. MasterCard said retailers are “the biggest Christmas ever”. We have heard that Amazon’s destructive power and online purchases have also risen in 2016. But online retail accounts for only 11% to 12%. People still like to shop in stores. The Wall Street Journal reported on December 27, “The store is under construction, not in the mall.
Business and personal balance sheets are recovering from the bear market credit crunch of 2007-2008. The recent tax cuts should be good for the economy. It is expected that tax legislation and trump relaxation of the rules of Trump are cited as strong market performance because of the reason we closed in 2017. But this is in the rear-view mirror. Stock markets tend to vote based on the perception of the next move.
Bull market, expansion, long-term existence. Investors ask: “How long?” People will not die of aging, it will not expand. People and the impact of expansion on the system died. In the past, rising inflation led to a rate hike by the Federal Reserve to induce a credit crunch recession, as we saw in 1980. Energy shortages have been a cause of the economic recession of the past. Neither is the current threat.
Despite concerns about rising interest rates, interest rates are still under pressure. Worryingly, low interest rates have pushed investors to riskier assets for profit. By 2018, the youngest generation of baby boomers will reach the age of 73, theoretically, they will divert more risky assets when they start spending their retirement savings. So far, this does not seem to be achieved. Retirees who entered their last year still needed rewards to raise funds before the year of “walking slow” or “not walking.”