This is the Thanksgiving time of year when we join together as a nation to pause and give thanks for all our blessings. Investors have a lot to be thankful for this year. Despite a slow and uneven economic recovery, and perpetual government gridlock, the economy and the stock markets have continued to grind higher through the year.
We can be thankful for the steady leadership at the Federal Reserve over the past few years. Their aggressive actions in 2008-2009 halted the recession much quicker than in Europe and other major economies. We have enjoyed three straight years of economic growth and stock market gains. Lower interest rates have allowed most corporations and households to rebuild their finances, and housing has become more affordable again. Finally, low interest rates have enticed investors back into the stock market, and the S&P 500 is up 28% so far this year as corporate earnings are at record levels.
The Federal Reserve leadership has been the most aggressive, reliable, and consistent central bank in the global economy and for this investors should give thanks. We do not know what the New Year will bring, but we do know that Janet Yellen, the new Fed Chair was ranked by the Wall Street Journal as the most accurate forecaster of all 15 Fed policy makers over the last three years. We appear to be in good hands-Thankfully!
We wish everyone a Happy Thanksgiving! For those of you traveling this weekend- be safe and let us know if we can do anything for you or your family.
Have a great weekend!