It may have taken the S&P 500 index 17 years to grow from 1,000 points to 2,000, but it looks like a new milestone may not be too far off in the future.*
Let’s take a look at S&P’s recent performance to get a hint of what might be in the cards for this trading instrument.
In 2016 the index experienced some high swings with low points of 1827 in February versus the all-time-high points of 2190 in August.* At the time it seemed like a record level and there was no headroom to grow.*
All that changed on November 8th, when President Trump took office and investors started to feel optimistic about his fiscal policies and infrastructure plans.* The index shoot up from 2087 all the way to 2250 in one month, showing a solid 10% growth in 2016 and setting a new all-time record.*
In 2017 S&P keeps on breaking records and indicates a 13.9% expansion from year-to-date.*
The current record is at 2326 and the Index shows no signs of slowing down, especially now that President Trump teased that his tax reform plan is just around the corner and when it comes to fruition corporations will pay a 15% tax — down from the current 35%!*
As of writing this, the S&P 500 index has entered a “clear skies” territory with no defined resistance.*
* Past performance is not a reliable indicator of future performance.
** Forecasts are not reliable indicator of future performance.
