2017 was a spectacular year for stocks, but several warning signs have cast a shadow over the bull market’s sustainability.
Although playing the rally could still pay off, investors are seeking refuge in more reliable assets to secure their portfolio. Against this backdrop, established dividend stocks continue to offer one of the best value propositions.
Rally Overdone?
Donald Trump’s seemingly improbable election victory has helped extend the second-longest bull run in U.S. history by instilling the feelings of hope and euphoria in the investing public. The promise of faster economic growth fostered by tax cuts, infrastructure spending and deregulation kept institutions heavily invested in the stock market despite mixed fundamental indicators. Although the U.S. economy caught a tailwind in the second quarter of 2017, below-potential inflation has weighed heavily on the outlook.
