S&P 500 Delivers 15% Return in 2016 – Weed Stocks up 208%

Greetings Friends,

Happy holidays. I hope everyone is enjoying this wonderful time of year.

For investors – there is plenty to be happy about.

2016 was a great year for stocks across the globe.

In the U.S., the S&P 500 delivered a total return (price gains and dividend payments) of 14%.

International stocks were strong too.

Vanguard Global Stock Index (VT) delivered a total return of +11%.
Emerging Markets (EEM) were up as much as 20% before closing up +12%.

Take a look at all three indices below.

2016 global stock returns 12-30-16

Looking forward, I am expecting another good year for global and U.S. stock markets in 2017.

I see three key catalysts that I expect to drive more gains.

1.) The global and U.S. economies will grow between 2% and 3% in 2017. Both the global and U.S. economies are expected to post solid growth between 2% and 3% in 2017. This is very respectable rate of growth from a historical perspective and that will support earnings growth, jobs growth and consumers spending.

2.) The S&P 500 will return to earnings growth in 2017. Speaking of earnings growth, the S&P 500 has been trapped in a brutal earnings recession for the last six quarters – that means corporate earnings did not grow for a year and a half. That will change in 2017 with the S&P 500 projected to grow earnings by 10% to 12%. This represents an important inflection point for the leading index.

3.) Potential for U.S. corporate tax cuts in 2017. Did you know that the U.S. has one of the highest corporate tax rate in the world? Take a look below.

corporate tax rates 2016

President-elect Trump has made cutting corporate tax rates one of his highest economic priorities.

I don’t think this is getting enough attention from financial media. Not only so I expect it to happen, if it does, I expect it to be a major catalyst for U.S. stocks and the S&P 500.

Companies would divert billions into share buybacks and dividend payments. That would be very good news for the S&P 500.

North American Cannabis Index up 208% in 2016

While the S&P 500 had a great year, cannabis stocks had a ridiculous year.

The MJIC North American Cannabis Stock Index was up 208% in 2016. Take a look below.

mjic na index 12-30-16

Congrats to my clients who have invested – not only did you have a great year – buying these stocks super low like we did  means you now have legitimate chance of beating the S&P 500 every year for many years to come.

I’m expecting cannabis stocks to have a great 2017. It’s still the first inning for the fast growing legal cannabis industry.

For more information please click the link below.

Legal Cannabis is the Fastest Growing Industry in North American with Sales Expected to Grow 250% by 2020

That’s all for now. Everyone have a great New Years.

I’ll be back in a few weeks to share some of my best investment ideas for 2017.

Your Investment Partner,

Mike

This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.

ABOUT THE AUTHOR

Michael Vodicka

Michael Vodicka is the president and founder of the Vodicka Group Inc., a licensed investment advisor (Series 65) and a financial journalist.