This week we take a look back at some of our hits and misses of 2016. We certainly had some of both in what was a difficult year to forecast the equity markets.
First, the year got off to one of the worst starts ever with a 10.5% stock market correction during the first five weeks of the year as oil prices collapsed. Then we got unexpected election outcomes. In the U.K., the Brexit vote and the stock market’s post-vote resilience were both largely unexpected. Similarly, few predicted Trump’s victory (which apparently surprised even the president-elect himself). That surprise was followed by another — one of the strongest post-election stock market rallies in history.
Against that unpredictable backdrop for stocks, we got some things right and some things wrong. Here is a look back at the hits and misses of 2016.