T Rowe Price: US Stock Market in "Honeymoon Rally"

The best days to be buying US stocks were in the first few days after the election result, and even better, in the period before the vote

T. Rowe Price 18 January, 2017 | 2:31PM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Dave Eiswert, portfolio manager of the T. Rowe Price Global Focused Growth Equity, warns it may be time to take profits from US equities.

What a year 2016 was for investors. An early year bear market has given way to a full-on cyclical bull market that has powered through Brexit, Donald Trump’s US presidential victory, as well as general weakness in economic growth and corporate earnings. At least for now, the market is choosing to look through a crescendo of macro and political noise and change and focus on the potential for cyclical recovery.

While there remain many uncertainties at the macro level, the first 100 days of Trump’s presidency in 2017 will be watched with high intensity by markets. To state the obvious, this creates a set up for ongoing market volatility as well as likely stock and sector rotation. Knowing the stocks you want to buy and being confident enough to buy them during periods of weakness is going to be an ongoing necessity.

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T. Rowe Price  T. Rowe Price is a global investment management firm dedicated to helping clients achieve long term success.

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