Skip to main content

 Ralicki Wealth Management & Trust Services

  • Phone: 772 221-4508
  • Email: Alex@RalickiWM.com

Form CRS Client Login Free Risk Assessment Here Tax Client Upload

 Ralicki Wealth Management & Trust Services

  • Home
  • About 
    • Our Team
  • Solutions 
    • Solutions
    • Investments
    • Asset Allocation
  • Resources 
    • Useful Websites
    • Financial Calculators
    • Video Library
  • Blog
  • Contact

 

    You are here

  1. Home
  2. Blogs
  3. ECONOMIC AND STOCK MARKET COMMENTARY

ECONOMIC AND STOCK MARKET COMMENTARY

Submitted by Ralicki Wealth Management & Trust Services on January 10th, 2017

Expectations are high for the U.S. economy as we begin 2017. A strong showing by the stock market and surging optimism among both businesses and consumers form the basis for what many expect will be a much better year for the economy. This likely improvement would follow an undistinguished 2016, in which growth probably fell short of 2%.

We caution, though, that there may be a lag between improving sentiment and actual gains for the economy. In truth, rising optimism is critical, as the public and businesses often spend more when confidence is on the rise. However, the rationale for this increasing confidence (mostly the forecast that the new administration will cut taxes, roll back regulations, and spend aggressively, thus creating new jobs, greater productivity, and faster growth), albeit perhaps sound, should not suggest that things will happen overnight. They will not. In fact, it may be 2018 before we see somewhat better levels of household spending and overall GDP growth. In all, even this modestly brighter view assumes that Congress will be fully on board.

Even so, 2017 should be a better year. The pickup in sentiment, the rise in wealth created by the stock market gains, and the relatively strong job creation levels all suggest that the new year will get off to a faster start than did 2016. Back then, assorted ills (led ominously by lower energy-sector investment and a noted drawdown in inventories) kept growth to about 1% in the first half. Absent those early pressures (and a strong recent showing in the manufacturing sector is most encouraging), GDP may rise by close to 2.5% in 2017.

There probably will be the usual unsettling issues abroad. Not only could oil be vulnerable to pricing pressures if OPEC’s output curbs fail to take hold, but the recent sanctions placed on Russia, if sustained, would create the kind of tensions not seen since the Cold War. In all …

The outlook for the stock market is mixed. A more positive inventory cycle and a recovery in energy-sector spending and manufacturing probably will help lift the economy and investor spirits. But elevated valuations and rising interest rates should act as counterweights. Therefore …

Conclusion: It could be a bumpy ride on the road to higher stock prices.

Source: Valueline.com

Categories

  • Business Planning (5)
  • College (1)
  • ECONOMIC AND STOCK MARKET COMMENTARY (25)
  • Education (2)
  • Finanace (15)
  • Finance (6)
  • Health Savings Account (1)
  • HSA (1)
  • Inflation (7)
  • Investment Planning (20)
  • market commentary (65)
  • Retirement (13)
  • Stock market (25)
  • Taxes (6)
  • Technology (1)

Book a Meeting

Join Our Email List

Tell a Friend

  • Sitemap
  • Legal, privacy, copyright and trademark information
  • 1235 SE Indian Street, Suite 102, Stuart, FL 34997 United States
  • Phone: 772 221-4508
  • Email: Alex@RalickiWM.com

© 2025 Ralicki Wealth Management & Trust Services . All rights reserved.

Website Design For Financial Services Professionals