It’s still early in the year, but a lot has been happening both in markets and the economy. The Dow’s first close ever above the 20,000 level drew a lot of attention to the granddaddy of the three major indexes, but the real winner so far in 2017 has been baby of the three, the Nasdaq, which made new all-time highs on seven consecutive days for the first time since December 1999.
Energy, Financials and Technology sector earnings have each contributed to strong performance year-to-date. I am also encouraged by U.S. economic data that are pointing to improving growth. In fact, two-thirds of economic reports received in 2017 met or exceeded consensus expectations. Looking deeper, sentiment reports on the services and manufacturing sectors, new orders for durable goods, vehicle sales, and employment were all notably better than expected.
Despite the momentum in equity markets and the improving economic data, I am still mindful of policy risks that remain. A policy mistake by a government or central bank, uncertainty associated with the new presidential administration, Brexit, China’s debt problems, and above-average stock valuations may present challenges to the relatively smooth ride we’ve seen so far in 2017 and periods of volatility over the course of the year are expected.
I remain generally optimistic but am closely monitoring a variety of data and important events that could impact your portfolio in the months ahead.
As always, please contact me with any questions or to book a phone appointment click the link below:
www.calendly.com/retirement/phone-meeting/
Sincerely,
Bryan Foronjy, CFP®
Founder and Principal Wealth Manager
Foronjy Financial
CA Insurance Lic. # 0F84170
Bryan Foronjy is a registered representative with, and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Strategic Wealth Advisors Group LLC, a registered investment advisor. Strategic Wealth Advisors Group LLC and Foronjy Financial are separate entities from LPL Financial.
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