Coal’s fall from grace is a well-known story and has had a predictable impact on the one-and-only coal ETF (a telling fact on its own); from its peak in April of 2011 to the inevitable trough in January of 2016.
President Donald Trump’s first address to the joint session of Congress in February may have elicited comparisons with some of President Ronald Reagan’s finest moments, but even the Gipper couldn’t compete with the Donald when it comes to setting market records.
Even the most inobservant investors can spot the arrival of the Chinese New Year by the ubiquitous column in every financial journal declaring that “20XX Belongs to China” and telling you that you need to add exposure to the world’s “largest untapped market.”
The past year was great for demonstrating one of the common investment fallacies that has kept behavioral finance specialists in expensive cars for many years — investors’ willingness to listen to a paid professional’s forecast for the market no matter what their track record.
Most armchair strategists started May by saying that 2016 was the year the old “sell in May and go away” adage would hold true, thanks to a laundry list of issues: Weak global economic growth, at least two Fed rate hikes, Brexit and Clinton vs. Trump, which were all supposed to knock equities down and send investors running for cover.