Record Highs By: Gabriel PotterMBA, AIFA® 2016.11.21

The past week has included a number of all time highs for key equity markets - the Dow Jones Industrial Average, S&P 500, and Nasdaq.  Oddly, one of the reasons for the bounce was an increase in energy prices, stemming from international agreements to limit oil production.  The energy sector has been beaten up for the medium term - the past 18 months – so stability in the prices offers more benefit for US producers earnings, rather than the compensatory effect of weakness for heavy energy producers like airlines.  Furthermore, prospects of a pro-growth Trump administration coupled with high infrastructure spending, and tax cuts, have all pushed equities higher. 

On the negative side, the bond market is experiencing a long overdue bear market. Market expectations predict that the Federal Reserve interest rate rise will rise according to the futures markets. 

 

 

 

 

 

 

 

 

Gabriel Potter

Gabriel is a Senior Investment Research Associate at Westminster Consulting, where he is responsible for designing strategic asset allocations and conducts proprietary market research.

An avid writer, Gabriel manages the firm’s blog and has been published in the Journal of Compensation and Benefits,...

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