Happy New Year!

I hope you enjoyed the holidays with family and friends, and are ready to start the new year. As we look back, the year past was one filled with surprises, challenges, and no small amount of angst. Worries about China's growth rate, U.S. recession risk, and tumbling oil prices occupied much of the first half of 2016, while concerns over Brexit and a growing sense of nationalism around the world, and the ever-looming next interest rate increase, ushered in the second half.

But toward the end of the year, economic concerns had abated somewhat and a new sense of optimism began to take hold. Our economy was posting solid, if not exciting, results, and fears about the rest of the world began to subside as well. By year's end stock markets around the world were largely positive, with much of the growth being found right here at home. Bond markets were also mostly positive, with core bonds (U.S. Treasurys and high quality corporate bonds) ending the year up decently, given the circumstances.

Here's a wrap-up of where the major indexes (and a few other major benchmarks) ended the year, including any dividends:

Stocks
S&P 500 (large companies): 11.96%
Dow Jones Industrial Avg. (30 large companies): 16.5%
Russell 2000 (small companies): 21.3%
NASDAQ (mostly technology and smaller companies): 8.9%
MSCI EM (emerging foreign markets): 11.6%
MSCI EAFE (developed foreign markets): 1.5% And no, I didn't forget a digit.

Bonds
U.S. Aggregate Bond Index: 2.7%
National Municipals: Flat
High Yield: 17%

Other Major Benchmarks
10yr U.S. Treasury Yield: 2.45%
Prime Rate: 3.75%
Avg. 30yr Mortgage: 4.4%
Oil (WTI): $53.75 per barrel
Dollars per Euro: 1.05

Have questions? Ask me. I can help.