Investment Outlook – Preview 2017

Prior to the election, the economy was looking late cycle. Margins for US companies had peaked, the labor market was at what most consider full capacity, and the global economy – while doing okay in 2016 – was likely at the tail end of the benefits it got from supportive monetary policy and large stimulus in China. The results of the US election have given markets hope these forces will be arrested through a cocktail of deregulation, tax cuts, and repeal of the Affordable Care Act, and markets have responded accordingly, sending stocks much higher and most bonds much lower.

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