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November 6, 2017 |
Market Flash Report - November 2017

As investors await more concrete details of potential tax reform within the U.S., market indices continue to push to all time highs entering the final two months of the year. We are roughly half way through the Q3 earnings season and have seen solid results, 77% of S&P 500 companies have beaten EPS estimates. Despite the recent hurricanes, Q3 GDP within the U.S. was strong. Expectations are that the Federal Reserve remains on track to raise rates by 0.25% one more time in 2017. The current rate remains between 1% and 1.25%. The European Central Bank announced plans to extend their quantitative easing starting in January 2018, although at a reduced rate (€30B down from €60B per month). This extension will last through September 2018, and the terms were left open ended to further extend or increase the pace of purchases, should adverse economic conditions develop. The announcement came as no surprise to markets and is a continuation of easy monetary policy around the globe.