Money Talks – December 31, 2016

This week on “Money Talks,” Research Analyst Nick Antonucci, CVA, is joined by fellow Research Analyst Jacob Keen and Senior Associate Jarrett McKenzie, CFP®, CWS®, to discuss the University of Michigan Consumer Sentiment Survey and the Conference Board Consumer Confidence Index. They also discuss home sales, interest rates and how the market appears to be closing the year. Our experts address a listener’s concern that following our Ten Year Rule would cause one to lose principal in terms of purchasing power. They discuss how the Ten Year Rule works in periods of recession and inflation, giving examples of how our investment strategy works. The research analysts also address listeners’ questions on General Electric Company and Walgreens Boots Alliance.

Market Roundup: Stocks Trade Lower in Final Trading Week of 2016

After being closed for the Christmas holiday, the markets opened Tuesday with a quiet session, as trading volumes generally dwindle around the holiday period. Despite not making a move of at least 1% in either direction since Dec. 7, the Dow Jones Industrial Average extended a post-election rally that has lifted it 8.8% since Nov. 8 and brought its 2016 gain to 14%. The S&P 500 gained 0.2%, with the Technology sector leading the way. Furthermore, U.S. crude oil rose 1.7% to $53.90 a barrel, its highest level since July 2015. Thanks to a recent climb in commodity prices, shares of energy and mining companies helped stocks inch higher midweek. The following day, Thursday, the markets closed mixed. Recent declines have put the Dow on track for its first weekly loss since the election and wiped out three weeks of gains for the S&P 500. Indices closed in red territory on Friday but gained for the year. In the year’s last day of trading, the Dow Industrials fell 0.1%; the S&P slipped 0.2%, and the NASDAQ fell 0.6%. However, for the year, the Dow jumped 13.5%, the S&P 500 added more than 9.5% and the NASDAQ Composite gained more than 7.5%. Crude oil also ramped up by 45% in 2016.