Cautious Forecast For 2017 Despite 2016 Market Gains

Blue Sky Financial pic
 Blue Sky Financial pic
Blue Sky Financial

A licensed professional in the financial advisory sphere, Frank Cardia guides Blue Sky Financial and provides a host of wealth management and retirement planning services. Engaging personally with clients, Frank Cardia emphasizes a flexible approach that builds on strong planning fundamentals and involves constantly evaluating allocation strategies to ensure that they meet current market trends.

Recent trends in the stock market have been largely positive, in part reflecting hopes that the incoming US administration will unleash untapped business potential. On the policy level, this involves a combination of several expectations, including tax cuts, deregulation, and renewed infrastructure investments.

Despite this, a recent Forbes article brought together the insights of senior Wall Street strategists, and emphasized caution in plotting strategies for 2017. One aspect of this is that best possible growth scenarios are already factored into current equity valuations, which means that anything less than stellar corporate performance will disappoint. In addition, the policies forwarded by the Trump administration may not necessarily pass through Congress intact and translate into the wholesale changes some investors expect.

A number of analysts argue that stocks are currently overvalued relative to actual earnings and profits, which would suggest that the market as a whole may see a certain degree of retraction. In weathering inevitable market ups and downs, it makes sense to maintain a properly diversified portfolio with appropriate risk management in place.

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