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News and Insights » UMAFS Market Review Week Ending 2/24/2017

UMAFS Market Week in Review ending 2-24-2017

Many of our clients have requested the return of our weekly update.  As such, we are happy to send you once again our weekly market email. This past week, the S&P 500 finished with a year to date return of 5.5%, completing its longest consecutive daily rally since 2013. Much of this movement has been driven by strong domestic corporate earnings as well as continued investor optimism concerning tax reform from the Trump administration.  

As compared to 2016, the U.S. equity markets have experienced limited downside volatility year to date. In the first seven weeks of 2017, the equity market hasn’t experienced a single day loss greater than 1%. While 2017’s smooth start has been refreshing, don’t be surprised to see some daily volatility creep back in before the year is through.  

Outside of the U.S., many international markets continue to offer attractive valuations, trading well below their historical norms. With the recent release of strong corporate earnings, upward momentum in these markets also appears to be mounting. Many believe that European markets have already priced in many anticipated key election results starting with France just around the corner and Germany in the fall.  

With U.S. equity markets now trading well above our historical price to earnings valuations and many international markets trading well below their respective historical levels, diversification will likely be an important theme throughout 2017.

February 28th, 2017 @ 12:00am by UMAFS
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