Given the market’s performance since the surprise election of Donald Trump as president, it’s hard to think about losses. Stocks are up big time on the wave of hope that Trump will reignite the economy, boost jobs and cut regulation and waste. Investors are expecting some “bigly” things out of the new administration, and asset prices have responded accordingly.
The problem is, investors may be setting themselves up for disappointment in the upcoming year.
With plenty of uncertainty surrounding the world’s political and economic scenes, forecasts for 2017 aren’t coming in too rosy. A variety of investment banks and analysts have now been telling investors to dial back a few notches. These lower forecasts could be a problem considering the so-called ‘Trump bump’ and rise in asset prices during the last few months.
In the end, the new year might not be the time to be a hero. Sound investing strategies could be the way to go.