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!