2016 was a tough year. There were 3 main drivers that I believe contributed to the high volatility in the stock market this year, 'political uncertainty', 'Dow Jones volatility' and the 'tepid economic recovery. Political uncertainty It was a tough year to make consistent profits using our index-based approach to investing (but we did anyway) because rather than moving in-line with earnings announcements, markets moved lockstep with political events such as the continuing 'War on Terror', Brexit and the U.S. election. Dow gains Just because the Dow Jones Industrial Average made new highs this year does not mean that your should just as high also. The DJIN index is made up of selected stocks based on their market capitalization. The index may slightly over-represent the health or the strength of the economy. I think a better indicator of the strength and health of the economy are the earnings from companies that make up the S&P 500 .
Exchange-Traded Fund Blog