
We believe the vast differential between the two time periods is in large part attributable to the difference in Gross Domestic Product (GDP) growth during the two periods. Over the last 17 years the average annualized real (inflation adjusted) growth rate in GDP was 1.87%. The growth rate in real GDP between 1982 & 1999 was 3.56% or 90% higher on an annualized basis.
The domestic equity markets have rallied strongly since the November election on the hope that President Trump will be able to implement a lot of pro-growth initiatives. If his administration is successful and we can realize higher economic growth, markets should follow and positively affect your investment management.
