I have participated in many market cycles over the years from the dot com bust to the financial crisis and even a "flash crash", but this year will mark the most interesting year for me along with many other traders. There is no doubt that if you participated in the markets this year that you will have a story to share in the future. Now the history books may not tell the whole story given that the year was mostly in an uptrend and finished at highs, but traders know there were many twists and turns along the way that shocked even the most seasoned.
After a mostly flat 2015 many were excited at the possibilities of 2016. The pent up demand for the markets was supposed to come in full force in early 2016. The reports from analysts about overseas money that would be forced into the US markets due to low interest rates, and lack of yield everywhere else on the planet was supposed to start the year off with a bang. Instead, the S&P 500 lost 5% in less than 3 weeks. Hopes for a strong year were almost dashed in the first month of 2016.
One of the more notable moments in 2016 was the all important "Brexit" vote. The vote to leave the EU caused wild swings in the futures markets, which ultimately caused circuit breakers to trigger overnight and into the next morning. Many were touting the fact that they had moved to cash to avoid such a disaster, but within three days it was if nothing ever happened and the markets returned to their norm.
Finally, and most obvious was the Presidential election, which many are still in shock over. The media had painted this picture that if Hilary Clinton won the election that the markets would surge to new all time highs. But, if Donald Trump won then we were in for a market collapse. Every time it seemed the Donald Trump was taking the lead, or if Hilary had a gaff the markets would fall slightly. Many were prepared for a Hilary win, but to many's surprise Donald Trump pulled it off and won in an electoral college landslide. The likes of which had never been seen in the past. While that markets did suffer a steep selloff overnight, by the next day and from that moment on have been surging to new, all time high after new high.
So, now the year seems that it will end at highs, leaving traders to wonder what sort of excitement can top what we saw in 2016. The bad news is there is no way of knowing. The good news is its just a few days away. Here's wishing you a happy, and safe new year.