by Ralph Cole, CFA
Executive Vice President of Research
A leading Oregon financial firm
January 13th — After rallying into the end of 2016, both interest rates and the stock market took a little breather this week. The S&P 500 finished the week basically flat, while the yield on the U.S. 10-year Treasury finished at a 2.40 percent. A quiet week as we head into earnings season.
Getting Ahead of Ourselves
Part of our theme for 2017 is that the market rallied a great deal at the end of last year in anticipation of economic growth that would occur in the near future. As such, we have pulled forward returns before we’ve seen actual improvement in earnings and growth. There was no place where this was more apparent than the financial sector the S&P bank index was up 23 percent between November 8 and year end. Today, several of the biggest banks announced fourth quarter earnings, and despite relatively upbeat reports, the stocks didn’t move much.
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