Buoyed by the best quarterly earnings growth in six years, blue chip equities are forging new highs, with investors disregarding the turmoil in Washington and discounting increasingly lofty expectations for the remainder of 2017.
This week, investors recognized the 8-year anniversary of a bull market that is now second only in length to the tech-fueled run of the 1990s. In March, blue chip stocks consolidated a small portion of recent gains, but nevertheless, the S&P 500 has now returned over 250 percent since the bear market lows in March of 2009.
The S&P 500 rallied again this week and is back to even for the year. Our original outlook came under pressure from the first day of trading in 2016. We expected rates to be slightly higher for the year and within six weeks the U.S. 10-year Treasury yield had fallen from 2.30 percent to 1.66 percent. We expected stocks to have a modest return of between 5 to 8 percent this year