Higher Highs Can Mean Larger Losses
As we near the end of 2017, we want to reflect on what has been a very good year for the market and the U.S. economy. Some would say a near perfect year. Consider the following facts:
2017 will be the 9th straight year of gains for US equities (which ties an all-time record)
The Dow has closed at an all-time high 66 times in 2017 (Highest # since 1995)
The S&P 500 is now up 13 months in a row (longest run since 1928)
US jobs, as measured by Non-Farm Payrolls, have now reached 86 months of consecutive growth (by far the longest streak in history)
The U.S. Unemployment rate is at a 16 year low.
Consumer confidence is at a 17 year high.
Inflation remains low with core CPI below 2%.
Earnings of US companies are at a record high and profit margins are near their highest levels in history.
Volatility has been extremely muted with rolling 12 month volatility measurements in U.S.