#197: What Is Driving The Markets? A Santa Claus Rally?

santa claus rally

Whatever was driving the markets, it stalled

The market stalled last week when the Fed came out with its interest rate increase. We find it interesting that the market looked shocked at the Fed’s action even though everyone knew it was going to happen. One reason for this is that the Fed is projecting three more rate hikes next year. Who knows if that will happen. The big driver for more rate hikes will be if more inflation actually comes to fruition. It’s nice to have this conversation since we have been talking about deflation for so long now.

Focusing on the real market drivers

santa claus rallyNow that the noise of the election and the Fed raising rates is behind us, we can focus on what is and will continue driving the markets. This week is loaded with a lot of economic numbers that will give us just that. We will see numbers from housing, 3rd quarter GDP, durable goods, and personal income.

Good combination for GDP

Many economists are projecting that the 3rd quarter GDP numbers will be revised up. We like to see this but more than that, we like where this push is coming from. The reason GDP will be revised up is coming from a combination of better consumer spending and better construction spending, on both the residential and commercial side. We haven’t seen this combination in a long time but it was going on pre-election.

Busy, yet positive time of year

santa claus rallyThis is a busy time of the year in the economy and with all the political rhetoric. Yet, there is still a lot of positive things going on in the economy. All this will continue into 2017 and we will keep you updated as the weeks move along.

Have a great holiday season and we look forward to bringing you more insights soon.


"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Greg Powell, CIMA
Wealth Consultant
Email Greg Powell here

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here

Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here

Trey Booth, CFA®, AIF®
Vice President
Senior Vice President
Email Trey Booth here

Fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.

Stock investing involves risk including potential loss of principal.

Schedule an appointment today!

Meet with us and begin planning your Better, Richer, Fuller® life.

Make an appointment

Subscribe to Our Insights

Every Monday & Thursday, our video blog gives you everything you need to know about the trends moving today’s markets with concise analysis.