The Federal Reserve is likely to raise interest rates next week. Trust Advisor summarizes the new numbers on the U.S. economy that have laid the groundwork for the rise. What kind of returns should investors expect in a Trump presidency? Kate Moore, chief equity strategist at the world’s largest money manager, BlackRock, offers a forecast for the coming years. While most strategists anticipate the bull market extending into 2017, there are a number of factors that could put a damper on it. Caroline Valetkevitch reports for Reuters.

Fed Just Got Another Major Reason To Raise Interest Rates– The U.S. services sector activity hit a one-year high in November. With a surge in production boosting hiring, further evidence of strength in the economy clears the way for the Federal Reserve to raise interest rates next week. Read more…

Return Expectations Are Lower–  Looking out over three to five years, BlackRock’s return expectations are meaningfully lower than they have been. For a global portfolio of stocks, they’re looking at 4% to 6% annualized returns, including dividends. That’s an average—returns might be slightly higher in 2017 and 2018, but then you get to a slowdown. Investors are going to have to adjust their expectations downward.  This view is expressed by Kate Moore, chief equity strategist at BlackRock, the world’s largest money manager, with $5.1 trillion under management.  Read more…

Poll: U.S. Bull Market Seen Extending Into 2017 But Trump A Wild Card–  The U.S. stock market’s bull run since 2009 will extend into 2017 if President-elect Donald Trump’s plans to stimulate the economy with infrastructure spending and financial deregulation come to pass, according to strategists in a Reuters poll. But limiting the enthusiasm are threats by Trump to consider imposing new import tariffs and the prospect of a potentially stronger dollar. Read more…

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