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Forgotten But Not GoneDonEdwards web

The end of the year is when we as investment advisors look back at the past year to see where we were right, where we were wrong, and where we were surprised.  We also look forward to the upcoming year and make our economic and market forecasts and predictions.  The U.S. economy offered no real surprises during 2016.  Slow economic growth continued, as it has since 2009.  The stock market, as measured by the S&P 500, rose 9.6% for the year, with almost all of that coming in the last two months of the year.  The bond market showed very slight gains for the year as interest rates spiked, also in the last two months.  In our last statement letter, we said we were expecting a post-election rally in stocks, so this has not been a surprise, although the size of the rally has been a surprise.

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