4 Best Momentum Stocks To Grab For 2017

President-elect Donald Trump’s Boxing Day tweet is good news for all you momentum investors!

In a self-applauded tweet, Trump stated that "The world was gloomy before I won -- there was no hope. Now the market is up nearly 10% and Christmas spending is over a trillion dollars!”

Market-friendly policies, steady U.S. job data, improving consumer confidence and an upbeat U.S. gross domestic product are all helping the broader market move north. In fact, all the major benchmarks including S&P 500, Nasdaq and Dow registered post-election gains of 5.6%, 5.3% and 8.6%, respectively.

We believe that this trend is expected to continue; hence, smart investors can currently rely on momentum investment approach. Parking hard-earned money, per this short-term strategy, will enable investors grab stocks which are currently performing better than their peers and are highly anticipated to continue the trend in the near term as well.  

Equity Universe in Bull Run

Trump has provided adequate impetus to the markets with his pro-growth policies. His intention to roll back banking regulations, boost government spending and slash taxes has given rise to very bullish market sentiment. Additionally, stable job growth in the U.S. market has also been reinforcing the broader market.

Per media reports, Christmas sales in 2016 are expected to cross $1 trillion, reflecting a 3.6–4% year-over-year increment. Performance of the market during these trading days mostly gives a fair view of how the market would likely perform in the coming year.

The third estimate of the Bureau of Economic Analysis showed that the U.S. gross domestic product (‘GDP’) has increased at an annualized rate of 3.5%, as against the anticipated pace of 3.3%. This upside is buoyed by higher consumer spending.

In addition, according to The Conference Board, the Consumer Confidence Index has increased from 109.4, this November, to 113.7, this month, hitting the highest level since 2001.

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