Wall St. Thinks Stocks Will Rise in 2017—What Could Go Wrong?
Wall Street’s rally could be derailed by renewed worries about President-elect Donald Trump’s policies, a resurgent dollar, or potential wild-card events like cyber attacks or a trade war, investors say as they look to 2017.
Stocks are at record highs on optimism Trump will boost the economy, and strategists in a recent Reuters poll expect more gains next year.
But they also worry about what could derail the market as a surprising 2016 wraps up, and an uncertain 2017 awaits.
Some potential roadblocks to more gains are discussed: Trump falling short; the dollar crimping earnings; the Fed becoming aggressive; populists dealing a body blow to the EU; and tough sledding ahead for the stock markets.