Weekly Market Commentary 01/27/2017

With the stock market breaking new ground this week – highlighted by the Dow exceeding 20K for the first time – the challenge of the economy to live up to soaring expectations becomes ever-more daunting. While economic fundamentals have improved in recent months, they clearly have not progressed to the extent indicated by the remarkable run-up in stock prices since the election. To be sure, the stock market is not the economy, as economists are quick to note. But in the minds of Main Street denizens, it is a barometer of how the economy is performing. Strong rallies tend to boost household confidence, while bear markets tend to be downers.