As the yearly returns can attest this year has been something rarely seen, SIMULTANEOUS GLOBAL GROWTH. The economic numbers from around the world have been steady as the result of monetary stimulus taking hold and elevating the markets. Not surprisingly, equities have been the place to be, because with new money being pushed into the market (quantitative easing) and zero or negative interest rates (guaranteed losing return); where else could you get a return on your investment?
With Dutch and recent French elections going according to plan and Donald Trump firing the FBI director for investigating his dealings with Russia, it’s hard to sometimes remind ourselves that the global economy matters more than politics. The health of the US economy and earnings matter more than the recent political woes and the Federal Reserve’s constant spotlight.
We decided to combine February and March in this issue as there weren’t as many headlines in February to discuss. March was a less impressive month compared to a fantastic February. In February the global economy rebounded with China leading the way. In March, we received mixed results from major economies with the exception of Germany and Hong Kong realizing strong economic results.
A new year is upon us as January brings in new political leadership lead by President Trump and a new set of economic and political uncertainties. Though there are many people that are scared, we do not foresee a doomsday scenario but rather an opportunity for the new administration to enhance the economic welfare of the US. They are our biggest trading partner and with Trump focusing on ripping up NAFTA (North American Free Trade Agreement) it has everyone wondering what will happen with our partnership. So far, it seems that most of the plight is directed towards Mexico due to their massive wage inequality.
While everyone is probably tired of hearing about the new US president-elect, his inauguration will be the event that will continue to dominate the headlines and may have a few lasting effects on the financial world. The inauguration day will be headlined by Jackie Evancho (the 16-year-old America’s Got Talent runner up, for those who do not know), 3 Doors Down, and Toby Keith. This is after many performers turned down the invitation to be at the event fearing the backlash that may come from it. The rest of the agenda will include a farewell to the previous President, taking of the oaths, and the presidential address.