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MARKET RECAP

  • U.S. stocks again climbed to new highs in December, finishing 2017 with a gain of 21.7%
    • This marked the 14th straight positive month for the S&P 500, a record for the index
  • The S&P 500 finished the month with a gain of 1.2%
    • Top Sectors: Telecom (+5.8%), Energy (+4.7%)
    • Bottom Sectors: Utilities (-6.4%), Real Estate (-1.0%)
  • Large Cap Value outperformed Growth again in December by just 0.7%
    • Growth  still outperformed Value by 16.5% on the year, the widest spread since 2009
  • Small Cap ended down 0.4% on the month
    • With a 2017 return of +14.6%, small caps were the worst performing size segment
  • International developed countries outperformed U.S stocks by 0.1% on the month and 3.4% year-to-date
  • Emerging markets were up 3.8% on the month and ended as the best performing asset class of 2017 up 37.3%
  • Long-Term Treasury yields were again relatively unchanged in December
    • The ten-year Treasury yield ended at 2.40%

 

ECONOMIC NEWS**

  • The economy created 148,000 jobs in December, marking the 7th consecutive year of job gains over two million
    • However, the pace of job growth has subdued to just 1.4%
  • Hourly wage growth came in at 2.5% growth year-over-year, unchanged from November
  • The Federal Reserve voted to increase the Fed Funds rate by 0.25%, bringing their target range to 1.25-1.50%
    • According to Bloomberg, the probability of another rate hike in March is 82%