Business & Finance

Special Market Update: 2016 in Review

BASKING RIDGE, NJ- Looking back on the final trading week of a very eventful year, we saw low volume and a break from the recent rallies for domestic indexes. While international stocks in the MSCI EAFE added 0.56%, all major U.S. indexes declined.[1] The S&P 500 lost 1.10%, the Dow was down 0.86%, and the NASDAQ gave back 1.46%.[2] For the first time since November 4, the indexes posted three straight days of losses.[3] Despite these last-minute decreases, 2016 ended very differently than it began.

Last January, domestic indexes rang in the New Year with quite unpleasant performances. While the S&P 500 and NASDAQ dropped, the Dow experienced its worst-ever five-day start to a year, losing 1079 points on fears of an economic slowdown in China and plummeting oil prices.[4]

By market close on December 30, 2016, all three indexes showed healthy growth for the year:[5]

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  • S&P 500: Up 9.5%
  • Dow: Up 13.4%
  • NASDAQ: Up 7.5%

In addition to this equity growth, last week showed us a number of encouraging economic indicators for 2016, including:

Consumer Confidence Surge: On December 27, Consumer Confidence beat expectations to reach 113.7 - a 13-year high.[6] This metric indicates that consumers feel more positively about jobs, personal finances, business conditions, and more.

U.S. Dollar Increase: The dollar was up for the fourth straight year, showing a 3.7% increase for 2016 after hitting a 14-year high on December 20.[7]

Crude Oil Recovery: After a rough start to the year, oil experienced its largest annual increase since 2009. In fact, three-dozen U.S. gas and oil producers in the S&P energy index gained more than 40% during 2016.[8]

We all know that 2016 brought its fair share of surprises - from victories for Brexit and Donald Trump to our recent stock market rally and beyond. However, the year ended with domestic indexes up and a number of positive economic indicators. As we look toward 2017, we see opportunities for continued growth, as well as many questions that no one can yet answer.

  • Will President Trump reduce regulation and taxes?
  • Will OPEC keep its pledge to lower oil output?
  • How will China's economy perform?
  • Could more "Brexits" be on the horizon?

The questions remain, but no matter the answers, we are here to help guide you through the year - and toward your goals - with proactive, strategic support. If you want to talk about what we experienced in 2016, or what we anticipate for the year ahead, we are always here for you.

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Walter Pardo is the Managing Director of Wealth Financial Partners, LLC (IFG). 

 

 

 

Securities and advisory services are offered through Independent Financial Group, LLC(IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Wealth Financial Partners and IFG are unaffiliated entities. OSJ Branch: 12671 High Bluff Dr. Ste 200 San Diego, CA 92130

  1. https://www.msci.com
  2. http://finance.yahoo.com
    http://finance.yahoo.com/
    http://finance.yahoo.com/
  3. http://www.cnbc.com
  4. http://money.cnn.com
  5. http://www.cnbc.com
  6. http://www.cnbc.com
  7. http://www.reuters.com
  8. https://www.bloomberg.com

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