U.S. GDP and the World Economic Forum in the Weekly Market Update by Valeo Financial Advisors (January 27, 2018)
January 27, 2018    Disclosures    POSTED IN  InvestmentsEconomyMarkets

Slow persistent growth has been the theme of the expansion since the depths of the financial crisis; fourth quarter U.S. GDP came in at a 2.6% annual rate of expansion which was below the preceding two quarters each north of 3%. The preliminary estimate of growth during the entirety of 2017 was 2.5% which exceeds the average 2.0% average that has prevailed in all of the 2000s. Global leaders gathered this week in Davos for the World Economic Forum with an official narrative titled, “Creating a Shared Future in a Fractured World.” President Trump is the first U.S. leader to attend the summit since President Clinton in 2000.

The U.S. large company index gained for a fourth straight week as earnings and profits are adding strength to the equity market sentiment. On another note, the U.S. dollar has fallen to a three year low against major currencies with movements being sparked by global leader comments. Fixed income investments are in a poorer state due to the 10-year Treasury yield approaching the highest level in three years, quite the opposite of the theme of a flattening curve throughout the majority of 2017. Emerging market stocks continue an unstoppable path higher thus far in 2018 posting a double digit return before the first month-end.

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