2017 1st Quarter Commentary

Equity markets experienced a strong start to the year. The S&P 500 ended the quarter at 2,363—slightly below the record high set on March 1. The Fed increased interest rates for the third time in 15 months, and three increases are now expected in 2017 instead of two.

The market continues to anticipate that many of the Trump administration's initiatives will be a shot of adrenaline to an aging economic recovery. However, the failure to push the repeal and replacement of the Affordable Care Act through Congress has created some doubts. Corporate tax reform remains a key agenda item for the markets, and investors have already priced in some level of reform. We continue to position portfolios for modest growth, although there are some signs that economic growth may accelerate.

Progress on tax reform will be key, and volatility may reappear if Congress disappoints with the level of tax cuts.

Download the 2017 1st Quarter Commentary