Investors in US stocks are likely to hold on to their money through the end of the year, with the Dow Jones Industrial Average ending 2017 on a strong note.
In fact, the S&P 500 will finish 2016 on a record high, the U.S. benchmark index, which measures performance by companies, rose 0.8% on Wednesday after the Dow closed up 0.9% on Thursday.
The Dow is expected to finish 2016 at 20,844, the longest consecutive run of record for the index since August 2008.
That was when the Dow was nearly twice the size of the U.
“The market is likely to remain largely unchanged in 2016,” said Andrew Smith, an analyst at Morningstar.
Investors have been holding on to the dollar, which is expected in the coming months to remain relatively weak, he added.
The S&s is also expected to rise this year, driven by more demand for stocks in emerging markets and an increasing focus on technology, Smith added.
Investors are also likely to continue to hold bonds, which are considered a safe investment by many, Smith said.
“The bond market is a safe haven for the dollar,” he said.
The bond markets are in a position of strength, and that should hold through the year.
Investment managers are betting that the U is going to be a little bit of a drag on the economy, as the economy expands at a slower pace than it did a year ago.
However, many of them expect that it will continue to grow.
Investor expectations of a pickup in the economy will continue in 2016, but investors may not be able to make much of a dent in inflation.
That means the U will likely slow in the first quarter.
Investments in stocks will rise as more people start to work again, with consumers spending, Smith noted.
That should keep the economy humming along for the first half of the decade, according to a Morningstar analysis.
However when it comes to inflation, Smith believes that inflation will remain low for the majority of the first year of the Trump administration.
That is because there is a lot of spending going on that will drive up inflation, he said, pointing to the Federal Reserve’s decision to raise interest rates.
While inflation is expected at just 0.1% in the third quarter, it will likely exceed that in the second half of 2016, he noted.