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Larry Fink on US Economy, the Dollar, Market Timing, and China

PART:
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Part 5
Larry Fink on US Economy, the Dollar, Market Timing, and China PART 5 OF 5

Larry Fink: Markets Have Rallied Quite Considerably

Larry Fink on the market rally

The S&P 500 Index (SPY) showed a strong performance after the US election, rallying nearly 4.6% between November 8 and December 30. In 2016, the index returned nearly 9.6%. The market (SPXL) rally has mainly been supported by optimistic views about the US economy (VFINX) (IWM) (IWF).

Larry Fink: Markets Have Rallied Quite Considerably

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According to Larry Fink, the market has shown a great rally. Optimistic views and expectations regarding Trump’s administration are driving the sentiment. He said, “The market has rallied quite considerably. We have high expectations with…[the] Trump administration [on] tax policy or infrastructure. It always takes longer. If the rollout of some of these growth initiative programs by President-elect Trump are slower, if they are less ambitious, then I think the market is ahead of itself.”

Will the rally continue?

Donald Trump’s proposed investment plans could impact the economy in the longer term. According to Fink, if these proposed investment plans and tax restructure plans disappoint markets, then we may see a drop in performance.

The S&P 500 index crossed its various important technical levels. The index saw new highs in 2016. For the index to make more new highs in 2017, fundamental factors will need to support the rally. At apex levels of technical highs, a continuation in fundamentals is necessary to achieve higher asset prices.

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