Taken a look at your stock portfolio lately? It’s a good bet it’s racked up solid gains this year.
Wall Street has taken stock investors on a mostly smooth, record-shattering ride in 2017. The major stock indexes are closing in on double-digit gains for the year, led by Apple, Facebook and other technology stocks.
The gains have the Standard & Poor’s 500 index, the broadest measure of the stock market, headed for its best year since 2013.
“This would go in the category of stellar year, with very little volatility in the market and pullbacks that were essentially minor,” said Quincy Krosby, chief market strategist at Prudential Financial.
Several factors have kept the market on an upward grind for most of the year and repeatedly driven stock indexes to all-time highs. The global economy rebounded, while the U.S. economy and job market continued to strengthen, which helped drive strong corporate earnings growth.
Investors also drew encouragement from the Trump administration’s and Republican-led Congress’ push to slash corporate taxes, roll back regulations and enact other pro-business policies. Congress passed the $1.5 trillion tax overhaul bill, which reduces corporate taxes from 35 percent to 21 percent, last week.
The S&P 500 index is on track to finish the year with a gain of about 19.7 percent, more than double its increase in 2016. The index has notched 62 record highs so far this year.
Including dividends, the S&P 500’s total return is on pace to be 22.1 percent. That means if you invested $1,000 in an S&P 500 index fund at the beginning of the year you’d wind up with about $1,221 at the end of the year.