When it comes to the stock market, November, December, and January are three of the best months of the year. Even with the market already so high, investors can expect it to head higher in the coming months.
Here’s my take on where things are right now and what we can expect through the end of the year.
Stock Market Review
Back in January of this year, we forecasted that the market would close the year at 23,000. A lot of people thought that estimate was a little aggressive. And yet, for the first time in history, we recently crossed 23,500! I would not be surprised to see a 24,000 or more by year-end.
This has really been a great year and we’re in a great place!
The economy, both globally and here in the US, is doing better.
Consumer confidence is incredibly high
Home prices are the best we’ve seen in over a decade
Interest rates are at an all-time low
Speaking of interest rates…
At the beginning of the year, we told you that we could expect three interest rate bumps in 2017. Well, we’ve seen the first two already, and the third bump will happen in December. Looking ahead to 2018, we are slated for four interest rate bumps during the year.
What to Expect In 2018
Here at Sloy, Dahl & Holst, we’re confident that 2018 will be yet another great year for the market. We’ll definitely see a bit of pull back, but this is normal and will actually be healthy for the market. In fact, we’re slated for one of the best runs we’ve seen in market history.
As for what stocks to keep an eye one, we continue to like the emerging markets better than the US. Technology funds are also a favorite. Would you believe that our technology fund is up almost 50% since this time last year?
Lastly, we’re overweight in financials, and as interest rates continue to go up, those financial are going to rise, too.
We’re in a great spot! And we expect this next year to be great.