It’s become a common theme in our newsletters where we like to remind investors (as well as ourselves sometimes) to take a step back from the headline news to examine where we really are in the current Bull Market cycle. While the news is constantly talking about a pending market top and subsequent drop, history shows us that we need to stay calm and, as the popular 80’s hit by Frankie Goes to Hollywood says, “Relax!”
2016 was a year in which political surprises dominated global headlines. From Brexit to Donald Trump, populism gained momentum around the world shocking insiders, giving hope to outsiders, and leaving market pundits to figure out what this all means for the future. Despite everything that happened, the S&P 500 still managed to finish the year up 12% on a total return basis. In spite of the uncertainty, the resiliency of this bull market shows that underneath it all, market fundamentals still look very strong. These market conditions show that there is still room for the bull run to continue in 2017, but as we have all come to learn, the unpredictable nature of our new President leaves us wondering what surprises he will have in store for us next.