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MARKET RECAP

  • Major U.S stock markets continued the post-election rally in January as President Donald Trump officially took over the Oval Office.
  • The S&P 500 was able to post a 1.8% gain despite a downturn during the latter part of the month
    •  Top Sectors: Materials (+4.6%), Technology (+4.4%)
    •  Bottom Sectors: Energy (-3.6%), Telecom (-2.5%)
  • The rise in Materials was the result of promises from President Trump to increase infrastructure spending, which could benefit companies in this sector. Energy declined due to lower oil prices stemming from higher U.S oil drilling activity and a large increase in domestic oil supply.***
  • Growth outperformed Value across all market capitalizations on the month, a reversal from what was experienced in 2016
  • International developed countries outperformed the S&P 500, increasing by 3.3% on the month
    • This was largely the result of a 2.6% pullback in the U.S. Dollar
  • Emerging markets rebounded strongly from last quarter’s decline with an increase of 6.7% in January
    • This came despite a downturn in oil prices and Trump’s ongoing trade rhetoric
  • Long-Term Treasuries recouped all of December’s 0.5% loss, returning 0.8% on the month
    • The ten-year Treasury yield ended the month unchanged at 2.45%

 

ECONOMIC NEWS

  • The U.S. economy added 227,000 jobs in December, easily exceeding expectations of 174,000***
    • The unemployment rate rose to 4.8%, due to a 0.2% uptick in the labor force participation rate
  • The consumer price index (CPI) increased by 2.1% in December, above the Fed’s 2% annual inflation rate target
    • The more closely watched personal-consumption expenditures price (PCE) index remains at just 1.4%
  • In the February meeting, the Fed kept rates unchanged, but noted that consumer and business sentiment has improved over the last few months opening the possibility for a rate hike later in the year.

Asset Performance 1/31/2017**

*Merrill Lynch **Bloomberg***Wall Street Journal. Charts are shown for illustrative purposes only. Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group.