Despite Third Day Of Losses, Stocks Close Out Year With Significant Gains

Economy Majed Mohsen
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While the past few days of the stock market have been lackluster to say the least, this has not stopped the Dow from closing the year on an overall upswing, with gains of over 13 percent and the S&P 500 was also within shouting distance of double digit gains for 2016.

In addition, the Nasdaq Composite also showed a significant increase in 2016, wrapping up the year with a 7.5 percent net gain. The past week was the first down week since the election took place and while these past few days have caused the Dow’s pace to slow, the market still finished 13.4 percent higher than the previous year.

According to Tobias Levkovich, the chief United States equity strategist at Citigroup, the stock market is expected to experience added gains in 2017. While investors are very hopeful at the moment, they have not allowed the gains of 2016 to lull them into a false sense of security.

Thanks to the proposals that have been put forth by the Trump administration, including reduced corporate taxes and regulation, experts expect the stock market to remain robust in the coming 12 months.

However, there is some January volatility to be expected, as the nation prepares for its transition from the policies of the Barack Obama administration to the vastly different policies that will be set forth by president elect Donald Trump. The current economic backdrop is solid, but only time will tell how much of an effect Trump’s proposed policies are going to have.