2018 Economic & Stock Market Outlook - December 6, 2017

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Includes: BIL, BNDX, BWX, DDM, DFVL, DFVS, DIA, DLBL, DLBS, DOG, DTUL, DTUS, DTYL, DTYS, DXD, EDV, EEH, EGF, EPS, EQL, FEX, FIBR, FTT, FWDD, GBIL, GIM, GOVT, GSY, HUSV, HYDD, IEF, IEI, IGOV, ITE, IVV, IWL, IWM, JHML, JKD, OTPIX, PLW, PPLC, PPSC, PSQ, PST, QID-OLD, QLD, QQEW, QQQ, QQQE, QQXT, RISE, RSP, RWL, RWM, RYARX, RYRSX, SBUS, SCAP, SCHO, SCHR, SCHX, SDOW, SDS, SFLA, SH, SHV, SHY, SMLL, SPDN, SPLX, SPTL, SPTS, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU-OLD, SPXV, SPY, SQQQ, SRTY, SSO, SYE, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TNA, TQQQ, TTT, TUZ, TWM, TYBS, TYD, TYNS, TYO, TZA, UBT, UDOW, UDPIX, UPRO, URTY, USSD, UST, USWD, UWM, VFINX, VGIT, VGLT, VGSH, VOO, VTWO, VUSTX, VV, ZROZ
by: Robert W. Baird & Co.

Summary

Global growth trends remain higher as world experiences synchronized recovery.

Maturing earnings growth cycle could increase focus on excessive valuations.

Global central banks attempting to thread the needle on policy normalization.

Mid-term elections heat up as cyclical bull market approaches maturity.

Stock market volatility likely to rise in 2018 and test ability of investors to look past the noise. S&P 500 expected to consolidate gains of the past two years, trading in wide range and finishing the year near where it begins.

Bond yields likely to move higher, with the 10-year T-Note yield reaching 3.0%.