As expected, once again, the markets didn’t crash in 2016. In a year when energy prices remained flat, terrorism spread throughout Europe and the Middle East, Britain voted to exit the European Union, the dollar spiked supressing exports, Donald Trump surprised the world being elected president, and the Cleveland Cavaliers finally won the NBA Championship, the markets’ winning streak continued. That is, the stock markets— in the U.S. and Canada anyway—forged ahead again, even more strongly for some indexes than last year.
That said, those of you who follow our stock picks will know that our core stock picks beat the market by about 3% last year, excluding the impact of dividends. Based on our market-based and fundamentals-based market timing indicators, we once again bet that the broad market winning streak would continue. We were really hoping for a market drop as we were well positioned to take advantage of a down market, but it didn’t happen. Continue Reading »