Since 2016, we have been hearing news that the bear market might be coming, as each bull run normally last 7 to 8 years, and 2016 is 8 years after the 2009 bull run. Investors have been cautious about how to invest during this uncertain time. In this seminar, Clarence Chee shared with us 10 predictions he has for the US stock market in 2017.
Start Of A New Bull Market?
Clarence Chee gave a surprising and different view from what the rest of the market or analysts have been saying. Clarence feels that now is the start of another bull run. He explained that the bear market which was supposed to come in 2016 did not come. He advised not to listen to other people or the news, but look at the charts to see if there is a bear market coming. No, the chart does not indicate a bear market coming.
Trump Inspired The Bull Market
Clarence said that Trump inspired the bull market. President of US Donald Trump proposes cutting US corporate tax from 39% to 15%. This would mean profits of companies would increase, which could also lead to increase in dividends and share prices. US corporations repatriating the cash from overseas subsidiaries back to US could also be used for purposes such as share buy-backs, paying dividends, research and development, mergers and acquisitions etc. Increase in corporate earnings could help to push stock prices higher. Several IPOs such as Snapchat could be launched in 2017.
10 Predictions of the US Stock Market in 2017
Clarence made several predictions for the US Stock Market in 2017.
- S&P 500 will break above the 2500 level.
- Fed might only raise interest rates in September 2017.
- 10 year treasury yields rising to 3%.
- Financials, the best performing sector in 2016, is likely to continue to be performing in 2017.
- Biotechs are the bounce sector of 2017.
- Healthcare continue to rise.
- Materials continue to rally.
- Utilities and consumer staples will be the worse-performing sectors in 2017.
- Japanese Yen will fall to 130 versus the US dollar.
- Weakening Yen will cause the Japanese stock market to be one of the best performing equity markets in 2017.
