(315) 624-7300 / Email Us
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Ascent Wealth Partners
  • Home
  • Investing
  • Planning
  • 401(k)
  • Knowledge
  • Team
    • Brad Kowalczyk
    • Mark Moshier
    • Scott McCartney
    • Doug Bissonette
    • Neil Edmonds
    • Joe Summa
    • Nancy Kowalczyk
    • Chris Lai
    • Tim Welchons
    • Steve Basile
    • Connie Benson
  • My Account
    • Schwab Login
  • Contact Us
  • Form-CRS
Home Chris Lai Market Currents- 12/07/2016
Back Home

Market Currents- 12/07/2016

byAscentadmin inChris Lai posted onDecember 7, 2016
0
0
Market Currents- 12/07/2016

Market Currents

 

  • President Trump. Contrary to expectations, Donald Trump did the near-impossible and won all the battleground states that he needed to prevail in the Electoral College, despite losing the popular vote by a wide margin.  His victory also has been the spur for a sharp market rally in stocks, along with a backup in interest rates.

 

  • (Maybe) A New Era. Tax cuts, increased infrastructure spending, and decreased federal government regulation will be cornerstones of the incoming administration’s economic policy.  Big questions for investors are whether Trump’s pro-growth, market-friendly policies will outweigh his protectionist views on trade and immigration, and whether, in any event, the Republican Congress will give Trump what he wants.

 

  • Rates Rising. Worries that a wave of spending under Trump will widen the budget deficit and lead to faster inflation have prompted investors to step back from Treasuries.  10-year Treasuries currently stand at 2.4%, up sharply from 1.6% seen in the summer.  With interest rates marching higher, bonds have witnessed price declines.  We remind clients that the declines are purely losses on paper; individual bonds held to maturity return the face value of the principal at maturity.

 

  • Aggressive Rotation. Capturing significant attention is the aggressive rotation between the sectors.  Banks, capital goods, and energy stocks – collectively known as the “Trump trades” – saw the strongest buying activity.  Meanwhile, the “bond proxy” stocks, largely from consumer sectors, went on sale.  Technology is perhaps the most unique aspect of the rotation trade, as they become a source of funds for the aforementioned purchases.

 

  • Another European Referendum. Reflecting a part of a broader pattern in developed countries of a deep frustration with the way things are, Italian voters voted NO to constitutional reform.  This outcome was as a no-confidence vote for Italian Prime Minister Renzi, who resigned, and in turn marks an end to the reforms he started.  Fears are growing that Italy, like Britain, will also vote to leave the EU in the future.

 

  • (Still) Cautiously Optimistic. As we are in the seasonally bullish final month of the year, we remain cautiously optimistic on the intermediate outlook for the market.  We believe earnings have troughed, setting a stage for higher stock prices supported by stronger profits.  We are politically agnostic, but believe that Trump’s policy initiatives are largely pro-growth and market-friendly.  Higher interest rates could pose competition for stocks, but a cautious Federal Reserve and high foreign demand for U.S. debt will likely provide some moderating offset to pressures for higher rates.
Share:

Previous

Managing the Market’s Pre-Election Jitters

Next

November Surprise

Related Posts

Market Currents- 11/04/2014
November 4, 2014
Market Currents- 11/04/2014
No Comments
Market Currents- 10/13/2020
October 13, 2020
Market Currents- 10/13/2020
No Comments
Market Currents – 7/19/18
July 19, 2018
Market Currents – 7/19/18
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • October 2017
  • September 2017
  • July 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • January 2015
  • November 2014
  • September 2014
  • May 2014
  • October 2013
  • June 2013
  • November 2012
  • May 2012
  • March 2012

Recent Posts

  • What Is Your Cash Doing For You?
  • Market Currents – 2/7/23
  • Market Currents – 1/12/23

Contact Us

  • Address
    NEW HARTFORD: 89 Genesee Street | New Hartford, NY 13413 | 315.624.7300

    ELMIRA: 1225 W. Water Street, Suite 1 | Elmira, NY 14905 | 607.734.2002

    SARATOGA: 16 Lake Avenue | Saratoga Springs, NY 12866 | 518.306.4220
  • Home
  • Investing
  • Planning
  • 401(k)
  • Team
  • Contact Us
  • Terms of use

Recent Posts

  • What Is Your Cash Doing For You? March 7, 2023
  • Market Currents – 2/7/23 February 7, 2023
  • Market Currents – 1/12/23 January 12, 2023
  • Strategizing For 2023 January 6, 2023

Login To Your Schwab Account

Copyright © 2023 Ascent Wealth Partners. All Rights Reserved.