Smart Money: 2017 was a giddy year for stock market but fixed income lagged – Auburn Journal

Since the Trump presidency began, there is little argument the stock markets of the world have been positive.

In 2017, some milestones are worth noting and although Trump himself might take credit for all of it, political rhetoric is far from truth.

The following statistics are taken from Bloomberg:

The Dow has reached new highs as well as most of the other indexes. Specifically the Dow cracked into new territory 69 times in 2017. 

With little looking back, the chart of various stock markets looks like the trajectory of a ballistic missile. Common contrarian assets like fixed income have languished some and one could argue this is in keeping with how markets move: Fixed income sometimes tends to move in opposite direction when investors are giddy with the stock market.

Chinese stocks had the most stocks considered as best performers. 

The so-called “fear index” VIX plummeted to new lows in a chart that looks much like the Dow but in the opposite direction, which means down followed by more down.

Global corporations broke the record for participating in bonds that emphasized green investments so the planet let out a sigh of relief in this year.

European corporations issued a record 96 billion euros in high yield debt, commonly referred to as junk bonds in some circles. This was attributed to record low interest rates and a favorable business climate.

Global corporate bonds outpaced them all with $2.5 trillion issued out in 2017.

Unemployment eased to 15-year lows in the U.S., Japan, Hong Kong, Israel, the U.K. and Portugal.

Bitcoin’s market cap outpaced all but 12 companies in the S&P 500 with a 1,752 percent gain in value, reflecting at time of writing $277 billion worth of the digital asset. 

Other 2017 notables include the largest equity buyout was accomplished by Apollo Global Management with a whopping $24.6 billion in funds and Hong Kong residential property continued to hold the valuation record as the most expensive real estate market on the planet. 

Seventeen Atlantic storms that were big enough to be given names are reported to have caused the largest insurance losses on record. 

And the U.S. student loan market exceeded the total amount of the high yield corporate market, which boils down to a heck of a lot of money is owed by college grads and attendees. 

Some say this could be another crisis in the making along with sub-prime auto debt. 

And 2017 also witnessed a world of excesses in the art world with Leonardo da Vinci’s Salvator Mundi fetching the highest price ever paid for a painting sold at auction with a price tag of $450.3 million.

All in all there have been worse years in the markets and while 2017 doesn’t hold all the records, the year has certainly been exciting for investors and companies alike.


Marc Cuniberti is an investment advisor representative through Cambridge Investment Research Advisors, Inc., a registered investment advisor. Contact Cuniberti at MKB Financial Services 164 Maple St., No.1, Auburn, CA 95603, 530-823-2792.  

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