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Quarter-End Insights

Market Outlook: New Expectations Set the Tone for 2017

Following the Trump victory, the market has incorporated expectations for stimulus, higher inflation, and higher interest rates.

  • The Morningstar Global Markets Index has returned 8.79% year to date and 9.64% over the past year. 
  • The market-cap-weighted price/fair value estimate ratio for our equity analysts' coverage universe is 1.02.
  • Healthcare is the most undervalued sector, with a price/fair value estimate ratio of 0.87. Basic materials is the most overvalued sector, with a price/fair value estimate ratio of 1.25.