Before providing projections for next year, the LPL Research team takes a look back at this time last year when the markets were recovering from more than a -10% pullback only to enter a period of steeper declines in January and February of this year. After the markets reached record highs again last week, it’s good to be reminded of how fickle short term market movements can be (Yes, one year is short-term).
Many of the drivers of these pullbacks have been worked-out, improving the possibility of continued slow growth into the near future. Of course we’re never without countless arguments for why we’re nearing the fulfillment of numerous financial concerns.
Most long-term investors will continue to keep an eye on recession indicators which seem muted at this point, and corporate earnings which have strengthened significantly in the latter half of 2016.
I found this condensed 2017 Outlook to be a straightforward look at many of the factors that investors should be considering. I hope that it provides you with a balanced picture in the midst of what seems like (as always) uncertain times.