Weekly Market Commentary 01/13/2017

While the post-election euphoria has clearly lifted spirits on both Wall Street and Main Street, it remains to be seen if improved attitudes translate into firmer economic activity. For sure, the omens are promising. Small businesses are more optimistic than any time since December 2004, according to the latest survey compiled by the National Federation of Independent Business, and fully 50% of the respondents expect better economic conditions over the next six months; in November, only 12% were as optimistic. A similar mind-set is taking hold among households. The University of Michigan’s Consumer Sentiment Index hit 98.3 in December, which, aside from an aberrational spurt in January 2004, has not been exceeded for a full month since December 2000.