December 23, 2017

On Friday, the S&P 500 was about unchanged (down 0.05%) and Toronto was down 0.1%.

CRH Medical was down 5.1%.

AutoCanada was down 2.2%

TFI International was up 1.6%.

It appears that we are set to close out 2017 with the S&P 500 up about 20%, the DOW up about 25% and Toronto up about 6%. Barring major bad news next week (which can happen anytime) 2017 will go down as an exceptional year for U.S. stocks. And, most are predicting continued good times in 2018.

Certainly the corporate tax cuts are a big positive for 2018. But there are other factors that could easily cause a sharp pullback. Those include higher interest rates, possible terrorist attacks and developments in the investigation of Trump and those close to him. Trump’s anti free trade policies could also harm many U.S. companies as well.

Statistics Canada reported that GDP was about unchanged in October. I believe there is some amount of estimation and statistical uncertainty in these numbers and so I would not be concerned about one month with no growth unless that was confirmed over several months.