The end of 2017 is upon us and it has been characterized by “Synchronized Global Economic Expansion”. Here in the U.S., record earnings, low interest rates and low inflation pushed the markets higher throughout the year, while expectations of tax reform drove it higher over the last half. Volatility was also low with the S&P 500 having a more than one percent daily move on only eight occasions this year, while it had 48 in 2016 and 71 in 2015. This led to the S&P 500 having 62 record closes on the year and finishing out December with its first 9 month win streak since 1983. So that begs the question “What should we look forward to in 2018?” While no one can predict the future, I’d let the trend continue to be our friend. The economy will be the driving factor as we see the implications of tax reform kick in along with proposed infrastructure spending. With the S&P 500 closing the year at 2673, we’re just a little over 12 percent from that 3,000 threshold, which is not an unrealistic goal given this year’s returns. For our TSP TIPS subscribers, we recommend remaining 100% invested in the C and S equity funds. Lastly, we wish all our TSP TIPS subscribers a very Happy New Year!!<br>Performance Data through 31 December:<br>Year to Date: 18.70%<br>Last 12 Months (PIP): 18.70%
The end of 2017 is upon us and it has been characterized by “Synchronized Global Economic Expansion”. Here in the U.S., record earnings, low interest rates and low inflation pushed the markets higher throughout the year, while expectations of tax reform drove it higher over the last half. Volatility was also low with the S&P 500 having a more than one percent daily move on only eight occasions this year, while it had 48 in 2016 and 71 in 2015. This led to the S&P 500 having 62 record closes on the year and finishing out December with its first 9 month win streak since 1983. So that begs the question “What should we look forward to in 2018?” While no one can predict the future, I’d let the trend continue to be our friend. The economy will be the driving factor as we see the implications of tax reform kick in along with proposed infrastructure spending. With the S&P 500 closing the year at 2673, we’re just a little over 12 percent from that 3,000 threshold, which is not an unrealistic goal given this year’s returns. For our TSP TIPS subscribers, we recommend remaining 100% invested in the C and S equity funds. Lastly, we wish all our TSP TIPS subscribers a very Happy New Year!!<br>Performance Data through 31 December:<br>Year to Date: 18.70%<br>Last 12 Months (PIP): 18.70%