2016 Returns

“How big 2016 returns are matters mostly in hindsight—it will be how the year is remembered, and could affect 2017 sentiment. If your goals, needs, time horizon and other factors are aligned with owning stocks, we believe the difference between ok and great returns isn’t significant. We recommend clients reduce equity exposure only if we believe a bear market is forming. We don’t think this is likely in 2016. Expectations remain too low, not too high. Risks always exist, but we don’t see huge, negative developments lurking unnoticed. Today’s negatives are small, widely discussed or long-running false fears. Absent a sound reason to be bearish, we’re bullish.”

For what it’s worth, this is the “Stock Market Outlook” of Fisher investments.

No one knows with certainty what the market will do tomorrow nor next year. However, 40 years of experience has taught me to stay fully invested in this market.