A lot has happened on the stock market since my last market review...all of it positive! As you’ll remember, in my last recap we hinted that the market would reach 24,000 before the end of the year and that we’d have a tax cut. And guess what– we’ve seen both these things and more!
At the beginning of December, the market had already hit 24,300 and it’s gone higher since then. We also saw our forecasted tax cut, which has leveled the playing field for us and will make us much more competitive overseas.
Expect Corrections in 2018
Although we estimate that the dow will reach 30,000 over the next 24 months, we’ll also see some corrections along the way. Over the last 7 years, we’ve seen 18 corrections:
14 corrections (3-10%)
4 corrections (10% or more)
These corrections have been good for the market, and any future corrections will also be healthy.
A Move Away from Technology and Toward Financial Markets
There’s no doubt that technology has been our number one performer this year. However, in 2018, we’ll be looking more towards financials. In fact, 20% of our portfolio is in financials. This is because the tax cut and interest rate spikes are great for this market.
Our estimate for next year is that we’ll have three big performers:
See You in 2018!
It’s been an unforgettable year and we want to thank you so much. Have a wonderful holiday season and I’ll see you again for another market recap soon!