The year 2017 proved to be one of the least volatile in the stock market’s history. The stock market’s largest pullback was only negative 3%, as compared to double-digit pullbacks that are typical in most years.
This begs the question of what is going to happen now that we are in 2018. Investors are interested in whether 2018 will see a pickup in market volatility. The answer most likely is yes, given that 2017 was such an anomaly. But it remains a guess on whether or not 2018 is going to be the year we see mild volatility or a storm in the stock market.
As the economy continues to strengthen, the Federal Reserve is using its power as an advantage. They continue to increase the interest rates. For instance, in 2017 when the economy saw a significant improvement, the Federal Reserves raised the interest rates to three times.
However, even in an improving economy, investors are not always guaranteed to make gains from stocks. 2017 was generally a productive year for the investors and company earnings soared. This situation should encourage younger investors to venture into the market readily.
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