Weekly Market Commentary 12/22/2017

This will be the last commentary for 2017. The next weekly will be published on January 8. We would like to wish all of our readers a healthy and prosperous New Year.

Upside surprises on the economy keep on coming, extending a pattern that took hold around the middle of the year. The trend of positive data continued into this week, as housing activity hit new highs for the cycle, consumers spent more vigorously than expected and the revival in business capital spending remained on track. All of the data this week were for November, putting the economy on track for another solid advance in the fourth quarter. If it hits 3.0%, a distinct possibility, it would be the third consecutive quarter the GDP growth rate sports a 3 handle, the longest such stretch in more than a dozen years.