Weekly Market Commentary 12/23/2016

With a nod to that old Wendy’s commercial, we can’t help but wonder, “where’s the beef?” For sure, the economy displayed more muscle in the second half of the year than the first, when it grew by a skimpy 1.2% annual rate. Indeed, data revisions continue to add strength to the third-quarter’s performance; in its third update, the Commerce Department on Wednesday reported that GDP expanded by a 3.5% pace during the period, up from 3.2% in its previous estimate and 2.8% in the advance report delivered two months ago. While the growth acceleration took place before the election, the financial markets have since behaved like the economy was off to the races.