The last trading day of 2016 produced a small and expected decrease in the substantial gains that all markets in the U. S. saw in 2016 according to announcements by the heads of the DOW, NASDAQ, and the S&P on December 30, 2016. Likewise analysts and investment advisors from Bespoke, Citigroup, and UBS examined their expectations for the markets in 2017.
The single word that dominated the late term upswing in the markets and the overall bullish predictions for growth in 2017 was Trump. Trump’s unexpected win in the Presidential election sparked a stock rally that overcame the drop immediately prior to the election and continued until the last trading day of 2016. Analysts claim that the small drop in all markets on December 30, 2106, was the result of profit taking to avoid taxes.
All predictions of double digit growth in the markets in 2017 hinge on the ability of Trump to produce the results that he promised during the election. Companies and investors are not expected to make immediate large scale market moves until the realities of Trump’s new tax legislation become law.
Bearish notes include Brexit, the moves that the Obama administration has made to limit U. S. oil production, and Presidential and Congressional action that has been made against Russian trade due to hacking by Russia during the Presidential election.
There is every expectation that Trump will be good for business. The selection of business and banking experts as cabinet members by Trump indicate a return to a business first climate in the United States at least for the next four years. The majority of experts claim that returns will not be immediate but will be substantial in the long term.