Can the stock market bull keep raging in 2018?

Stocks soar in Trump's first year

Stocks had a phenomenal year in 2017. 2017 is usually at This kind of point over. So what comes next for the market?

Well, if the first trading day of 2018 is usually any indication, things look promising. The Dow quickly leaped to a triple-digit point gain Tuesday morning. as well as many experts are predicting another solid year for U.S. stocks in 2018, albeit not as strong as last year.

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The S&P 500 rose about 20% in 2017. The Dow surged 25% while the Nasdaq soared nearly 30%. This kind of will be hard to repeat in which.

Bill Stone, chief Investment strategist with PNC Asset Management Group, noted in a report Tuesday in which long-term average total returns for the S&P 500 (which includes dividends) are about 10% annually.

although a 10% gain on top of last year’s runup wouldn’t be too shabby.

Sure, some are starting to worry in which stock prices may be too high (especially inside tech sector) as well as in which much of the Great news for 2018 may be priced into the market already.

Related: The great debate: Will corporate tax cuts trickle up or down?

Yet many bulls point out in which there is usually still much to like about the U.S. right at This kind of point. There is usually the potential for a boost to profits through lower corporate taxes. The job market as well as overall economy continues to hum along. Consumer spending remains resilient too.

Jason Pride, director of investment strategy at Glenmede, said in a recent report in which tax reform should also help boost capital spending plans by businesses since corporations will at This kind of point be able to expense such investments right away.

What’s more, the global economy seems to be on the upswing. Europe as well as Japan are clearly on the mend. Fears of a hard landing in China seem to be waning. as well as the worst might finally be over in hard hit emerging markets like Brazil as well as Argentina.

This kind of synchronized growth should lead to even higher revenue as well as earnings growth for many of the blue chip American companies in which helped propel the market higher last year. Think of firms like Boeing (BA), Caterpillar (CAT), Apple (AAPL), Visa (V) as well as Walmart (WMT).

although if there is usually a significant headwind for stocks, This kind of could be the proverbial case of there being too much of a Great thing, namely in which growth finally brings about more inflation.

William Lynch, director of investments with Hinsdale Associates, wrote in a note to clients Tuesday in which investors need to keep a close eye on commodity prices.

“Increased economic growth brings increased demand as well as commodities such as oil as well as metals could rise along with agricultural products as well as materials,” Lynch wrote.

Related: 2017 was an epic year for stocks

“The cost of oil ended the year at nearly $60 a barrel, its highest level in over 2 years, as well as could go even higher with increased demand as well as coordinated production cuts by OPEC,” he added.

If This kind of trend continues, in which could push the Federal Reserve to raise rates more aggressively than investors might like — which could wind up slowing the economy.

So far though, there is usually little evidence in which consumer prices are rising dramatically just yet. Wages have been held in check too.

in which means in which incoming Fed chair Jerome Powell is usually unlikely to deviate through the playbook of current Fed chair Janet Yellen as well as shock Wall Street with faster as well as bigger rate increases than currently expected.

Assuming in which the Fed doesn’t upset the apple cart, there is usually another risk in which some fear the market has been ignoring for too long — global politics.

Stocks soared in 2017 without taking a breather for a correction despite the volatility in Washington, tension in North Korea as well as worries about Brexit. How much longer can the market hold its nose as well as pretend in which the earth is usually a stable place?

“A Trump-Kim throw-down in North Korea is usually still on the horizon, Brexit moves through theory to reality as we approach the March ’19 exit date, as well as the risk of populism continues to have negative implications for elections in Italy, Mexico, as well as Brazil,” noted Dave Lafferty, chief market strategist at Natixis Investment Managers, in a report.

“Thus far, buoyant markets have overpowered geopolitics, although in which could change in 2018. Such is usually the nature of black swans,” Lafferty added.

sy88pgw (brand-new York) First published January 2, 2018: 11:30 AM ET


Can the stock market bull keep raging in 2018?

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