Since the election in November, we have experienced the Trump effect. What exactly is the Trump effect? Rising stock prices, falling bond prices, a stronger US dollar, and falling precious metals prices.*
As we entered the first trading week of 2017, we have started to see a reversal in the Trump Effect: The US dollar pulled back 1.6% on January 4th and 5th• The yield on the 10 Year Treasury fell 2.36% (meaning bond prices went up). Gold has jumped up 2.05% in the three trading days of 2017. *
The moral of the story: Stay diversified
*Daily Wealth. January 7, 2017
These are the opinions of Justin Brill and not necessarily those of Cambridge, are for informational purposes only, and should not be construed as investment advice.