The transfer of power in the United States peacefully occurred yesterday at noon for the forty-fifth time in our country’s history. Regardless of a person’s individual political views, one cannot discount this rather unique hallmark of American democracy. The president’s first 100 days in office will constitute a period of evaluation. While the new administration will likely make some progress with policy changes that could favorably impact corporate earnings, these economic policies will require time to take hold. Any disappointing data in the meantime could be met with volatility in the markets.
During the shortened week due to the Martin Luther King, Jr. trading holiday on Monday, equities managed to go absolutely nowhere. The S&P 500 opened Tuesday at 2269.14 and closed Friday at 2271.31, up just 2.17 points, or 0.09%.