A Look Back to 2017 of World Events, Happy New Year…

Happy New Year. In this weekend update, we look back to 2017 and quickly review some of the more significant and impactful world events.

Certainly, we can look back at any given year and identify major events but it seems as though every year there are new more significant events as we become more and more a global economy. Two major hurricanes this year slowed the economy and jobs slightly but economic growth has continued.

The FOMC provided a long awaited rate hike as Janet Yellen’s last monetary policy act before her departure. The hikes are expected to continue into 2018 but at a slower rate than previously expected. Further rate hikes could slow the economy but could strengthen the U.S. dollar

The European Central Bank (ECB) has continued with low interest rates and has indicated they would continue with their accommodative quantitative easing. This will likely keep the euro from becoming to strong.

The first year of the Trump administration has come to an end and seen the passage of a tax reform bill. The bill has caused some weakness in the U.S. dollar and further strength in U.S. equities. In addition to the tax reform, the “U.S. first” posture and strong stance against North Koreas by the Trump administration will impact trade agreements in 2018 and beyond.

Britain invoked Article 50 of the Lisbon Treaty. It is my opinion that this event was more significant than the Brexit vote in 2016. Article 50 is passing the point of no return. It starts the clock and requires Britain to negotiate all the terms of its departure in 2 years (March 29th, 2019). The negotiations will likely be difficult and we will see the majority of the work in 2018.

There are dozens of events and economic events that have had and will continue to change the course of the world economy including geopolitical events. One thing is certain, we can expect new trends and opportunities in the coming year.
May you all have a happy and prosperous 2018.