Overview

Even people who warned of big corrections if Trump were elected are now calling for bigger gains to come
The volatility index (VIX) fell to it’s lowest level in 2.5 years last week
The crude oil volatility (OVX) fell to two year lows
Treasury yields (10-year) have jumped above 2.5% (up from 1.36%)
The S&P 500 recently traded at 22.3 times what it’s companies earned in previous 4 quarters
Higher than 92% of readings since 1929
The previous 9 times when trailing price/earnings valuations topped 22 times, the index saw pullbacks avg 2.6% 3 months later and 6.2% after 6 months
Sentiment has improved, but data says household spending has not
The US economy may be “humming along” but it needs a new catalyst to show investors we aren’t at the peak of the current cycle - Nicholas Colas, Convergex
- For now sentiment is enough, but in 2017 the new administration will need to deliver
The IPO market was down big in 2016 and could be poised to rebound in 2017
- Says Kathleen Smith of Renaissance Capital
- She estimates the pipeline to be 250 companies strong (were 275 in 2014)
- Spigot could open in mid-Feb
- Of note, Snapchat has filed to go public
Thanks to a new accounting rule, many companies will report better looking profits
- The rule lets companies use stock based compensation benefits ot reduce their income tax and boost earnings

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123 Barron's - Everything Is The Most Amazing That It Could Ever Be! 13:29 Share

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123 Barron's - Everything Is The Most Amazing That It Could Ever Be!