Other Points of View: March 2017
- Regi Armstrong
- Mar 28, 2017
- 2 min read
Welcome to the Other Points of View, a monthly eZine designed to complement our WealthProtect Status Update. Other Points of View's primary aim is to give you in an easy, once per month format direct links to articles, blogs, and research that you may find valuable.
Please keep in mind that opinions shared via those links belong to those authors and do not necessarily reflect the views of LPL Financial or Armstrong Wealth Management Group. Enjoy!
- Armstrong Wealth Management Group
The "Sweet 16" is set. So in the spirit of March Madness and an exciting NCAA college basketball tournament that has already brought us two shockers in second round exits by Duke and Villanova, we have compiled our "Sweet 16" for the stock market. Specifically, we have identified 16 keys-many of them policy related-for stocks for the remainder of the year [Figure 1] and assessed their implications for the market. While the path for several policy-related areas is uncertain, we still expect a solid year for stocks in 2017-potentially even slightly above our year-end S&P 500 target of mid-single-digit gains,* depending on that policy path. Look for a deeper dive into some of these market drivers in our "Final Four" next week.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All indices are unmanaged and may not be invested into directly. Historical performance is no guarantee of future results. The Standard & Poor's 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The economic forecasts set forth may not develop as predicted.*As noted in our Outlook 2017: Gauging Market Milestones, we expect mid single-digit returns for the S&P 500 in 2017 and the continuation of the eight-year-old bull market, consistent with historical mid-to-late economic cycle performance. We expect S&P 500 gains to be driven by: 1) a pickup in U.S. economic growth partly due to fiscal stimulus; 2) mid- to high-single digit earnings gains; 3) an expansion in bank lending; and 4) a stable price-to-earnings ratio (PE) of 18 - 19. Gains will likely come with increased volatility as the economic cycle ages. The Armstrong Wealth Management Group WealthProtect System is an investment risk control system designed (but not guaranteed) to limit significant losses in major bear markets (excess of 30% loss from market peak to market trough). It is NOT designed to prevent normal market losses (under 20%). No strategy can assure a profit or protect from a loss. Occasional false signals can reduce returns.
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