Another year is drawing to a close and it looks like it will finish on a particularly high note, at least from a financial markets perspective. Donald Trump has yet to be inaugurated but his election certainly lit up equity markets across the globe; this new found investment exuberance even pushing the Dow Jones index into record territory.
But that’s not all. We also have a property boom that’s pushing house prices off the charts and we are still enjoying record low-interest rates, making investment borrowing particularly attractive. So, all in all, we have a sensational end of a year to celebrate.
But, that does lead us to the vexing question of ‘are we in for more of the same over the coming year’? Will Donald Trump truly make America great again, and in doing so create the economic catalyst to jolt world economies back to their pre 2008 sanguine state? Well, stranger things have happened, and to single-handed raise global GDP should be a piece of cake for a man who has in the past, brow beaten some of America’s finest “celebrities’ into achieving business success.
One sign that we may be in for a pretty good year is the fact that even Harry Dent, the gloomiest bear economist on the planet, has suggested there will be a further 10 – 20% in this rally. Now, to actually act on a prediction made by Mr Dent is a rather perilous journey in itself, as he has made some real ‘doozies’ in the past. Back in 2000 he was predicting the Dow Jones to break above 40,000 and more recently gold prices were supposed to collapse to USD700 per ounce. But if the current market optimism has enveloped even Harry Dent, we should be in for a nice upward trajectory well into next year.
Hopefully the rest of the world’s governments will be following the same script as “the Donald” propelling all of us into a prolonged period of peace, prosperity and progress. If nothing else, next year is sure going to be an interesting one.
I would like to wish you all a very Merry Christmas and a truly prosperous New Year, and thank you very much for your readership, I appreciate it greatly.
Stay tuned over the holiday period, and as always please send any questions or comments you may have, I would love to hear from you.
Have a safe, happy and enjoyable time this Christmas
