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News & Views  
Holiday Edition 
 

December 21, 2016



I hope all is well.  In this edition of News & Views, I will discuss the market's response to the 2016 election.  As always, please contact me with any questions or suggestions you may have.

Election Results Are In
Winners: Financial Stocks, Energy Stocks, U.S. Dollar

Losers: Interest Rates, Gold  

The market reaction to the 2016 election has been decisive: financial stocks, energy stocks, and the U.S. Dollar have gone up while bonds and gold have gone down.

Interest rates have actually been on the rise since July 8 when the 10-year bond was at 1.36%.  Post-election, rates have continued to march higher peaking last week at 2.62% on the 10-year bond.  Rising rates are negative for bond prices, but can be a positive for financial companies like banks because banks can raise their margins and generate more profits.

Retirement Plan Limits for 2017
Same as 2016

Traditional / ROTH IRA : $5,500 standard contribution limit with a $1,000 catch-up contribution for participants age 50 and above

401(k) / 403(b): $18,000 standard pre-tax contribution limit with a $6,000 catch-up contribution for participants age 50 and above

SIMPLE : $12,500 standard pre-tax contribution limit with a $3,000 catch-up contribution for participants age 50 and above

HAPPY NEW YEAR!
Thank you for the trust and confidence you place in me.  I wish you and your family all the best in 2017!
 
Sincerely,
 

Paul Hewitt
 
 
(949) 727-4734 x101