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Feb 6, 2017

Financial Market Summary and Outlook

FDP Header Financial Market

January 2017

Good vs. Average

2016 was a very good year for diversifed portfolios as returns were boosted by exposure to diversifer asset classes, meant to provide additional risk adjusted return over time. This is a welcome turnaround from 2015, when most diversifer asset classes trailed large cap US stocks as represented by the S&P 500 Index. If you use the S&P 500 Index as your yardstick, then 2016 turned out to be an average year for stocks. Going back to 1928, the average annual return, including reinvested dividends, runs nearly 10% (NY Stern School of Business data). When the year had ended, the S&P 500 rose 9.54%. Throw in dividends and 2016 rose 11.96% (Morningstar). Mid-cap and smaller company shares topped 20%.. SEE MORE…..

Index Graphic

A Look Back at 2016

The year finished on a solid note, but 2016 didn’t start out that
way. Falling oil prices, worries about China, an upward lurch in
junk bond yields, and overblown fears of a recession took a big
toll on investor sentiment. CNNMoney pointed out that the first
ten days of the year were the worst start for the Dow in its history
– that’s going all the way back to 1897. To compound the angst,
comparisons to 2008 were rife. However, this wasn’t 2008, there
wasn’t a subprime crisis that was brewing, and shares touched
bottom in early February (St. Louis Federal Reserve). SEE MORE….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Reproduction Prohibited without Express Permission. Copyright FDP Wealth Management. All rights reserved. Advisory Services offered through FDP Wealth Management, LLC, a state Registered Investment Adviser and Valmark Advisers, Inc. a SEC Registered Investment Advisor. Securities offered through ValMark Securities, Inc., Member FINRA/SIPC. 130 Springside Drive, Suite 300, Akron, OH 44333-2431 800.765.5201 Prosperity Partners and FDP Wealth Management, LLC are separate entities from ValMark Securities, Inc. and Valmark Advisers, Inc. Prosperity Partners, FDP Wealth Management, LLC, ValMark Securities, Inc., Valmark Advisers Inc., and their representatives do not offer tax advice. You should consult your tax professional regarding your individual circumstances. Indices are unmanaged and cannot be invested directly in. Past performance is not a guarantee of future results.

Indices are unmanaged and do not incur fees, one cannot directly invest in an index. You should consult your tax professional regarding your individual circumstances. This information is provided by Financial Jumble, LLC. Financial Jumble, LLC is a separate entity from ValMark Securities, Inc. and ValMark Advisers, Inc.
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