Since the surprise election of Donald Trump, the markets have been on a straight upwards trajectory.
This week, investors received a dose of reality. The so-called Trump Bump got a bit bumpier, as traders started to question just how much the President-elect will do. Volatility crept back into the markets, and stocks spent much of their time ebbing and flowing between gains and losses. (Although, here are a few reasons why you may want to ignore the election results.)
Data on the week painted a mixed picture as well. Metrics were bullish, but perhaps not as optimistic as in recent readings. Major economic indicators showed that economy is doing OK, but traders were looking for more.
Earnings on the week didn’t help either, as the firms that reported also painted an in-between picture. With earnings season ramping up, this made investors nervous as well. We could be in for another round of missed expectations and letdown.
All in all, the start of 2017 has once again provided a sense of déjà vu to investors. This uneasiness is how last year kicked off. Volatility may be here to stay.