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Quarter-End Insights

Our Take on the Fourth Quarter

U.S. stocks ended 2016 on a high note as Trump’s election, a rate hike, and the OPEC production cut deal were eyed.

U.S. stocks continued their climb in the fourth quarter. The broad-based Morningstar US Market Index rose 4% in the quarter, is up over 12% for the year, and has gained nearly 15% a year for the past five years.

The biggest story of the quarter was likely the election of Donald Trump. Although the futures market briefly sunk on the news, the market quickly turned around and rallied through the end of the year. Investors have bet that the new administration will spend heavily on infrastructure, cut taxes, and reduce regulations. Interest rates rose, too, as the bond market priced in higher expectations for inflation and growth.