January 2017 Outlook
It was a roller-coaster year for many investment assets in 2016. U.S. stocks opened with their worst start to a year in history – a 13% drawdown in January and February. Oil prices hit 15-year lows. Many key interest rates in Europe were negative. The UK left the European Union marking the biggest shakeup in the EU since its founding in 1993. Donald Trump defied the polls with an unexpected win. After the dust settled on numerous worries, U.S. stocks rallied late in the year to end up positive for 2016 at 12%. International stocks lagged again but are poised to make up ground. Bonds typically provide safety for investors but saw meaningful losses in the second half of the year as interest rates rose quickly.