The S&P500 lost 1.1% last week and ended up by 9.5% for the year. 2016 was an amazing year where the market climbed to new record highs, mainly because the expectation that Trump is good for the economy, however, now comes 2017.
There are several reasons why the market should stall now: 1. Stocks are priced too high 2. Some investors didn’t sell in 2016 due to tax reasons, will very likely sell now 3. Interest rate is going up. I expect a pullback of at least 5% which may have just started last week.