The SMIF class has examined current market conditions and after extensively evaluating potential upcoming headwinds and tailwinds for the market, we have come to a consensus for key indicator projections for the close of Q2 2017.
We are currently seeing an upward movement across all major U.S market indexes reaching new highs as investors adjust their portfolios and respond to growth opportunities after the recent presidential election. The class has agreed upon a Q2 S&P 500 estimate of 2,160, with GDP growth rate of 1.9%, inflation of 1.4% and treasury yields coming in at 1.9%.
As we move forward towards the close of 2016 and into the beginning of 2017, we see potential upsides for the markets with continued strong job growth, high consumer confidence and spending, low interest rates, and the opportunity for growth as a result of decreased regulation and taxes under a Trump presidency. We have concerns with growing oil stockpiles, and the strengthening dollar in a raising interest rate and inflation environment. As we continue through the year, we plan to closely monitor any OPEC movements, BREXIT movement slated to happen before March 2017, what will come of Trump policies, fiduciary law, and mortgage standards.