Market Recap 2016 | The Odyssey Online
Start writing a post
Politics and Activism

Market Recap 2016

What's to come in 2017?

51
Market Recap 2016
http://stockmarket-watch.com/wp-content/uploads/2015/07/Stock-Market.jpg

In January of 2016, I became increasingly interested in the global market(s). I’ve learned a lot in just one year about how trading works, the technical analysis, why the economic factors create the results that they do, among other things. With that, I want to briefly recap and reflect on a few of the major market events in 2016 and what I see for the new year.

Let me begin by regarding Brexit. Brexit is a term used for The United Kingdom (Great Britain) exiting the EU (European Union). Their withdrawal, much like the 2016 US election, was not projected by pollsters. It was an unprecedented surprise that sent a ripple, not only across the NYSE (New York Stock Exchange), but globally. Initially, uncertainty among investors dug a crater in the major US indexes. However, prior to the dip, stocks rebounded as analysts projected a subtle impact on the future of markets.

Another area of focus for me in 2016 were the Emerging and Frontier global markets. These derive from under developed countries like Kuwait, Argentina & India, among others. They present great investment opportunity. I say that because they could hold the keys to the future of our global economy. However, political/economic uncertainty makes selection relatively risky. I recommend finding a strong ETF if you want exposure.

Now let’s consider an event that whole world had their eyes on, the 2016 Presidential election. It was a turbulent ride full of accusations, scandals and, in my opinion, a whole lot of entertainment. That’s not the point though. I want to point out how much volatility it created in the fourth quarter of 2016. Leading up to Nov. 8th, there was great uncertainty among investors as to where they should dump their cash based on the potential policy in Washington D.C. A surprising victory for Donald Trump over Secretary Clinton was just the beginning of what turned out to be, a bullish year-end run. Post election, The DJIA surged to new benchmarks, set winning streaks and now sits just south of its high at 20,000, up 13.4% on the year. Pretty good for a year that recorded its worst January ever. For those of you who don’t know, DJIA is an acronym for Dow Jones Industrial Average. It’s an index on the New York Stock Exchange, that tracks thirty major companies on a price-weighted average. So essentially, if you ever want to see how the market is doing, in general, take a peak at the DJIA, Nasdaq or S&P 500. These are the big three indexes in America.

Anticipation of Trumps policies, spending, tax cuts and are, for the most part, to thank for gains on Wall Street. But, he is still President-elect Donald Trump. Will he be able acquire a budget that’s in alignment with his infrastructure plans? Will he shun the renewable energy sector? Will the Health Care industry get back on its feet with an aging population, the “repeal & replace of Obamacare”, and an limitation of price caps on drugs? Will Janet Yellen be replaced at the Fed? Will inflation dramatically suppress purchasing power? These questions are for your consideration because virtually nobody knows the true answer to them. Time will tell the narrative.

Lastly I want to reflect to the best of my knowledge which industries, I believe will thrive, and which ones will dive this year. First and perhaps the most relevant to our lives is technology. I think 2017 will be chalk full of M&A. For instance, a competitive advantage among FANG (Facebook, Apple, Netflix & Google) has shaped high barriers to entry. As companies like FANG compete, they’re seeking acquisitions that can help push them ahead of competitors. It seems like Tesla has the advantage in self-driving cars. But they have a lot of debt and rising competition. Google and Apple also are working on a self-driving car. The catch with them, is that they have more cash flow than they know what to do with. Could one of the two make a bid for Tesla? Will Facebook evolve from just a social media platform into something bigger? I think Zuckerberg has big plans for FB. But with Snap Inc.’s IPO this coming year, should Facebook be worried? Next I expect cyber-security companies to mature. As we’ve seen recently, hacking has become a norm internationally. Potential for threat is huge; therefore, companies like IBM need to innovate quickly to provide protection from breaches. I expect infrastructure and construction companies to thrive as well. With Trump’s fiscal stimulation plans, its inevitable we will see growth here. But how much exactly? There is even bigger potential for Bio/Nano-tech, Pharma & Health Care companies. While technology advances, medical treatments are becoming more effective; but at the same time, more expensive. With higher drug prices, increasing overall costs, advancement in genetic modification, a limited number of Health Care networks/plans for consumers, etc., I see these industries to have significant potential in terms of growth, throughout 2017 and beyond.

As I’ve come to realize, there is a lot going on, “out there”. I admit, much more than I can keep up with. But, staying in touch with my surroundings and self educating myself at least a little bit every day, has compounded to be something great. It doesn't have to be the stock market; but find something that you’re really interested in, and self-educate yourself on it. Strive to be an expert.


-AE


Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Student Life

The 5 Painfully True Stages Of Camping Out At The Library

For those long nights that turn into mornings when the struggle is real.

517
woman reading a book while sitting on black leather 3-seat couch
Photo by Seven Shooter on Unsplash

And so it begins.

1. Walk in motivated and ready to rock

Camping out at the library is not for the faint of heart. You need to go in as a warrior. You usually have brought supplies (laptop, chargers, and textbooks) and sustenance (water, snacks, and blanket/sweatpants) since the battle will be for an undetermined length of time. Perhaps it is one assignment or perhaps it's four. You are motivated and prepared; you don’t doubt the assignment(s) will take time, but you know it couldn’t be that long.

Keep Reading...Show less
Student Life

The 14 Stages Of The Last Week Of Class

You need sleep, but also have 13 things due in the span of 4 days.

454
black marker on notebook

December... it's full of finals, due dates, Mariah Carey, and the holidays. It's the worst time of the year, but the best because after finals, you get to not think about classes for a month and catch up on all the sleep you lost throughout the semester. But what's worse than finals week is the last week of classes, when all the due dates you've put off can no longer be put off anymore.

Keep Reading...Show less
Student Life

28 Daily Thoughts of College Students

"I want to thank Google, Wikipedia, and whoever else invented copy and paste. Thank you."

1144
group of people sitting on bench near trees duting daytime

I know every college student has daily thoughts throughout their day. Whether you're walking on campus or attending class, we always have thoughts running a mile a minute through our heads. We may be wondering why we even showed up to class because we'd rather be sleeping, or when the professor announces that we have a test and you have an immediate panic attack.

Keep Reading...Show less
Lifestyle

The Great Christmas Movie Debate

"A Christmas Story" is the star on top of the tree.

2404
The Great Christmas Movie Debate
Mental Floss

One staple of the Christmas season is sitting around the television watching a Christmas movie with family and friends. But of the seemingly hundreds of movies, which one is the star on the tree? Some share stories of Santa to children ("Santa Claus Is Coming to Town"), others want to spread the Christmas joy to adults ("It's a Wonderful Life"), and a select few are made to get laughs ("Elf"). All good movies, but merely ornaments on the Christmas tree of the best movies. What tops the tree is a movie that bridges the gap between these three movies, and makes it a great watch for anyone who chooses to watch it. Enter the timeless Christmas classic, "A Christmas Story." Created in 1983, this movie holds the tradition of capturing both young and old eyes for 24 straight hours on its Christmas Day marathon. It gets the most coverage out of all holiday movies, but the sheer amount of times it's on television does not make it the greatest. Why is it,
then? A Christmas Story does not try to tell the tale of a Christmas miracle or use Christmas magic to move the story. What it does do though is tell the real story of Christmas. It is relatable and brings out the unmatched excitement of children on Christmas in everyone who watches. Every one becomes a child again when they watch "A Christmas Story."

Keep Reading...Show less
student thinking about finals in library
StableDiffusion

As this semester wraps up, students can’t help but be stressed about finals. After all, our GPAs depends on these grades! What student isn’t worrying about their finals right now? It’s “goodbye social life, hello library” time from now until the end of finals week.

1. Finals are weeks away, I’m sure I’ll be ready for them when they come.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments