Stocks are bought on expectations, not facts. -Gerald Loeb
Another week and another new closing high for the S&P 500. After opening the day in the red today, the market rallied slowly throughout the day to close at an all-time high to 2,351.16. Today’s all-time high close was just shy of yesterday’s all-time intraday high of 2,351.31. And so, the rally continues.
The big story for the markets this week was Fed Chair Janet Yellen’s testimony to Congress. She “expects the economy to continue to expand at a moderate pace.” The market interpreted her comments that the Fed could raise rates sooner than later.
As part of this recap, I wanted to highlight the market’s performance since Election Day and how my personal investment account is doing year-to-date compared to the market.
S&P 500 Performance
As you can see, the market has been relentless since Election Day. The market has gained 12.6% in a little over 3 months. I wouldn’t credit the rally to the new administration just yet because it’s only been 4 weeks (though it seems a lot longer). Regardless, the rally has been pretty good in 3 months.
In a recent post (How to Invest in 2017), I identified how I was playing the market. I’m still sticking with that strategy of 50% bonds and 50% stocks. However, I am utilizing leveraged ETFs. So far, I’m satisfied with the performance for the year.
If you would like to know more about Exchange Traded Funds (ETF) check out this easy to read book on ETFs. It doesn’t just teach you about ETFs but also about investing in general. As always, if you want to know more, let me know in the comments or Facebook.