3 another week, another tally in the win column market.
3 3 joining us to discuss the markets is jim lyons from edward jones.
Q#1 ... so jim, stocks have increased 5 weeks in a row.
What should we make of it?a1: well helping stocks move higher has been a better than expected earnings season, as 66% of the companies that have reported have beat analyst expectations.
As we move forward, it will be important that the improvement in the underlying fundamentals keeps pace with the market.
If that's the case, 2017 can be another solid year for investors.
In our view, the short-term is always tough to predict, and a longer-term perspective will be required as the market's path may become choppier than it has been.
Fortunately, the underpinnings of this market remain favorable, in our view.
Q2: so what should investors look to from last weeks news?
A2: well, here are a couple of things that happened last week that are worth noting: noting:the fed - after two rate increases over the past two years, it's likely that 2017 will bring multiple rate hikes from the federal reserve.
In our view, the exact timing of this year's rate hikes are less important than the fact that rates are rising in general.
The takeaways are 1) fed rate hikes reflect the fact that the economy is improving and 2) even a couple rate increases this year will still leave interest rates at a relatively low level, meaning higher rates shouldn't snuff out economic growth.
Growth.tax reform - markets saw a bump in early february in response to president trump's comment that an announcement on a so-called "phenomenal" tax reform proposal could be delivered in the coming weeks.
Investors have found a renewed sense of optimism since the election, responding to the trump administration's pro-growth proposals around tax cuts, reduced regulation and infrastructure spending.
Our view is that these policies can and will be helpful to growth, but that more detail is needed.
Q3: well, what should investors make of the stock market?
3 3 3 another record - the dow set another record high last week, extending a streak that has seen 11 consecutive days of new highs - a streak not seen since the late '80s.
Record highs, in and of themselves, are not a worrisome signal.
We do expect the spotlight to spend more time shining on elections in france, germany and the netherlands, the beginning of the brexit negotiations this spring, and speculation around upcoming fed rate hikes.
As this occurs, we think market swings will get wider, including the potential for a more meaningful dip in stock prices.
Prices.economy adds traction - the reason we think the stock market dips mentioned above will be dips and not prolonged dives is based on the ongoing improvement we are seeing in the economy and corporate earnings.
Pullbacks that occur tend to be good buying opportunities.
We don't think the u.s. economy will fully hit its stride in 2017, but we do expect the rate of growth to improve over last year.as in all markets, we think that investors should continue to plan for their goals and stick to the fundamentals of what they can control.
Diversify for your risk tolerance and buy quality investments.
Prepare but don't try to predic.
Jim lyons of edward jones thanks for stopping by and offering some sage advice during these