If investors had any concerns that 2017’s strong equity market returns had the ability to carry over into 2018, I think it’s safe to say that they’re probably gone now. The S&P 500 set its 14th all-time high of the year on Friday, and we’re not even to the end of January yet. The Dow and S&P 500 are up more than 7% on the year, and the Nasdaq is up nearly 9%.
Market watchers Friday were hoping for a third straight quarter of 3% annualized GDP growth. While they didn’t get their wish (the final number came in at 2.6%), there was a lot to like in the report. Consumer spending, construction and investment all showed strong gains. The data did, however, suggest a pickup in inflation, which should cement another rate hike come March. The Fed futures market has priced in a roughly 80% chance of a hike, but the latest data should help push that closer to 100%.
Click the button below to read the rest of this original article on Seeking Alpha.
If you enjoyed reading this article, be sure to subscribe to the site and receive the ETF Focus Weekly newsletter absolutely FREE! Just check out the box below!
