A holiday Report

Stock and bond markets are closed today in observance of Martin Luther King’s Birthday. We will be back to trading tomorrow.

As earnings season kicks off we begin 2018, looking at one of the key drivers of long-term stock performance: profits.

2017 was the first year since 2010 to see positive earnings growth in the S&P 500 Index, foreign developed markets, and emerging markets. This broad-based strength in global earnings helped spark a global rally, as the MSCI ACWI (All Country World Index) gained 24%, with many emerging market countries gaining even more.

The big question many are asking is whether there’s room for stocks to continue to go higher in 2018 given the large gains we saw in 2017. When you look at the extent of corporate earnings growth globally, we think last year’s gains were justified, and believe that we could be looking at the first time since before the Financial Crisis that we will have back-to-back years of positive earnings out of the United States, foreign developed markets, and emerging markets. That is a nice backdrop for continued higher prices globally.

Everyone have a wonderful holiday. If you are working, thank you for your contribution to the economy. If you are off, please be safe. Either way take a minute to reflect and be thankful you live in the greatest and most prosperous country in the world – past or present.

Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.

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Troy Reinhart • January 12, 2018


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