What Made 2017 a Low-Volatility Year by HCR Wealth Advisors

The stock market is by no means predictable, resulting in risks for those hoping for predictable returns.  Often however, one can at least anticipate trends that may be seen in the stock market better than blindly gambling, which is typically based on little more than luck. So why was 2017 such a surprise? Financial experts never predicted that the year would have as little volatility as it did, and HCR Wealth Advisors recently released a blog post on their thoughts on the year.

HCR Wealth Advisors has been providing wealth management and financial advice for 30 years. Its founder and CEO, Greg Heller, firmly believes in his company’s mission of providing dedicated, individualized investing strategies and advice to its clients.

Chief investment officer Jordan Kahn recently wrote a blog post with his thoughts and views on 2017. He stated that 2017 was one of the “least volatile years on record.” Thoughts on the reasons vary, but what Kahn’s post relays is his thoughts on the future, short term. While 2017 was incredibly stable, the very nature of the stock market is unpredictable, and the American market is susceptible to change based on foreign events. However, Kahn states a few reasons why investors can be optimistic soon. Investor confidence broke a 17-year record in heights, showing that investors are more willing to risk trading for bigger returns. Also, the US economy in general is showing continual improvement, and not just limited to a single metric, but almost across the board. The Federal Reserve raised interest rates 3 separate times, another sign that the economy is getting healthier.

Unfortunately, investing was not all increases, as equity funds brought in $123 billion. While this sounds like a lot of money, bonds funds brought over $500 billion in the same amount of time, showing a sharp decrease in the popularity of equity funds.

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