Thirty days have gone by since my last market recap. Let’s dive into what’s been happening since then.
A month ago, we said that, even though the market was already seeing record highs, we estimated that it would go even higher and hit 24,000. As of December, the market has climbed to 24,300! We also noted that we’d see a tax cut– and we did!
Looking Ahead to 2018 and Beyond
So what can you expect from the next 24 months? We estimate that we’ll see a 30,000 Dow. However, that doesn’t mean that we’re not going to see any corrections. Corrections are healthy.
In fact, since 2010, we’ve had 18 corrections!
- 14 corrections of 3-10%
- 4 corrections of 10% or more
Looking ahead, the tax plan is going to be healthy for the US corporations. It’s leveled the playing field for us and will make us much more competitive overseas.
What’s Happening with Technology and Financial Markets?
Technology has been our number one performer, year to date. However, we’re slowly seeing a rotation out of technology. That money is headed straight to financials.
At Sloy, Dahl, & Holst, 20% of our portfolio is in financials, so this is a good thing! The reasoning for adding to our financials was twofold:
- We knew there would be a tax cut which would bode well for the financials
- And of course, we knew interest rates were and are heading higher
Big Market Performers of 2018
My guess is next year, we’re going to have 3 big performers:
- Emerging markets
We’re headed higher, we’re going to see a 25,000 Dow soon, and as I said earlier, the market is headed to 30,000 in the next 24 months.
Happy New Year from Sloy, Dahl, & Holst
It’s been a year that I’ll never forget! I want to thank you so much. Have a wonderful holiday season. I look forward to talking to you next year.
– Ron Sloy