As Dow Hits 20k, What Should Investors Expect for 2017?

Setting a Record

The Dow has done it. On Wednesday Jan. 25, the Dow hit a record high of 20,069 amid celebration from broker-dealers and investors alike. The 20k mark is an important milestone for the industrial market index. It not only represents the U.S. economy’s turnaround following the recession, but also the wave of stock market optimism riding on President Trump’s election. While this is certainly historic for the Dow and the U.S. economy itself, this milestone has been met with wary optimism by economists and investors. The election of Donald Trump has certainly spurred stock activity, with the November results sending an upward surge in market indices points. However, the Federal Reserve’s record low interest rates and 8-year stimulus package have set much of the pace for the recovery.

Investors Gauging 2017

Although the stock market’s rising optimism has been a boon for investors, it’s further growth depends on a number of potentially serious factors:

• Global-political shifts
  • Global politics have a huge effect on U.S. investments. There is a lot happening on the international stage that investors need to be wary of.
• Future U.S. trade regulations/restrictions
  • President Trump’s policy on international trade is still being rolled out. Already, the U.S. has withdrawn from the Trans-Pacific Partnership and more trade regulations are stated to follow. It remains to be seen how these new policies will affect investment markets.
• Global market shifts
  • The U.S. economy is tied to the global economy. A crash or serious drop in global markets could spell trouble for U.S. stock investments.

While investors should remain optimistic about the future, caution should still be exercised. Here are some tips for for safe investing so you can protect yourself from unforeseen downturns.

• Review 2016 investment statements – what were sound investments, what weren’t?
• Analyze top performing stocks from 2016 to apply to potential trends for 2017
• Thoroughly check out any new investment opportunities before committing
• Make sure to have a diversified investment portfolio

Other Resources

• For more investor-preparedness tips for 2017, check out this bulletin from Investor.gov
• Read more on the Dow 20000 rally in this CNN Money report
• Contact Savage Villoch Law, PLLC today for more info on protecting your investments