1. Several analysts believe the bull market may continue into early 2017, with the Dow Jones potentially reaching 20,000-21,000. Investors are advised to consider transportation, financials, healthcare, real estate, utilities and industrials. 2. The ECB kept interest rates unchanged despite the Italian referendum result. The OPEC production cut may open opportunities for US oil exports to Asia. Apple is considering ways to repatriate cash and jobs to the US. 3. Just three stocks - Goldman Sachs, UnitedHealth, and Caterpillar - accounted for nearly half of the Dow's 1300 point gain in the last month.

1. @UY
Bull into 2017...
Published on December 10, 2016
Market Thoughts of the Week Ending 12-10-2016
Bull market may run into January and middle of February 2017 according to many savvy market
analysts. DOW gained 3.8% this week alone, and particularly Transportation up 4.5% this week
and 25% up this year. Is it post-election Trump effect as DOW gained 1,300 points since Donald
Trump was elected? Many believe that bull may run into January and through most early part of
2017. If you believe this analysis perhaps it may be opportune time for you to take look at
Transportation, Financial, Healthcare, real estates, utilities, industrials… Dollar strong and gold
down, and confidence is up 40%. Highest since 2011. There is certain domestic centric up
swing. But some say now is time to take profit and look for dips to buy. You decide.
ECB held on interest rates in spite of Italian Referendum. And OPEC decision may be opening
opportunity for Americans to export oil to Asia. Trump is pressing for repatriation of money held
overseas and encouraging American companies to comeback to America as Apple is analyzing
the ways to do so. And American steel is restructuring and pressing to bring thousands of job
back. Many movements afoot signaling revitalization of economy. So which are the companies
you should consider riding this surge? Many experts are providing their analysis and visions for
riding DOW up to 20,000 or perhaps 21,000.
Some may become richer as result of taking opportunity on the changing administration, and
perhaps retire well. But can you retire? Perhaps you may consider working through your
retirement as 28% of retiring workers are intending to work in their retirement because, some
need the money, healthcare, keeping productive and engaged. So how are you?
Market closed Friday week at: DOW--19,756.85; S&P--2,259.53; NASDAQ--5,444.50; Gold--
$1,161.20; Oil--$51.43; and 10-Year Bond--2.471%...
Here are the highlights of the week:

2. 1. Market Grinds Higher until late January, early February. While
some may be concerned that market is moving too high too fast, but veteran strategist Jeff Saut
told on Thursday he would still buy any dips, at least over the next month or so. "My timing
model says this market grinds higher into the end of January, beginning of February," the chief
investment strategist for Raymond James said. U.S. stock closed at record levels again on Friday,
continuing the rally that began after President-elect Donald Trump's victory on Nov. 8. Saut
thinks investors should look at small caps, financials, industrials and tech. "Value has
outperformed growth since the election noticeably," he said, noting that small- and mid-cap
stocks have been "on fire." Tom McClellan, editor of The McClellan Market Report, agrees with
Saut's timing. "Generally speaking 2017 should be a good year, because there's just gobs of
liquidity trying to get through the door and into the stock market," he said. However, while there
is cause for optimism that there will be less regulation and lower taxes, valuations are getting
high. Be cautious here. You've got to take some profits, particularly take profits given the strong
rally we've had in cyclicals," he said. Instead, he would rotate into beaten-down names. Ride the
wave or sell and take profit? How do you feel?
2. ECB Holds Interest Rates. Stocks closed higher Thursday and Friday,
notching new highs again as a post-election rally continued after a key monetary policy
announcement from the European Central Bank. The Dow briefly rose more than 100 points
before ending 65 points higher at a record 19,614, with Goldman Sachs contributing the most
gains. The S&P 500 added 0.22%, with financials rising around 1% to lead advancers. The
NASDAQ advanced 0.44%. "This really is the Trump trade," said Phil Blancato, CEO of
Ladenburg Thalmann Asset Management. "This trade is about the potential for a more pro-
business economy. The central bank also extended its quantitative easing program until
December 2017, but will reduce purchases to 60 billion euros per month from 80 billion
euros. The euro whipsawed following the ECB's announcement, trading just below $1.09 against
the dollar before falling around 1.5% to $1.06. The U.S. dollar, meanwhile, rose 0.96% against a
basket of currencies to trade at 101.19.
3. Just 3 stocks push almost half of DOW huge one-month
rally. They are: Goldman Sachs, United Health, and Caterpillar. The Dow Jones industrial
average has gained about 1,300 points over the past month. And interestingly, nearly half of that
advance has been produced by just three stocks. Leading the field by a wide margin is Goldman
Sachs: That stock's 26.5% rally over the past month has added about 320 points to the Dow. In
second place is UnitedHealth, which is up about 15.7%, and has consequently tacked about 150
points onto the 30-stock index. Finally, Caterpillar's 17.3% run had added about 95 points, just

3. ahead of JPMorgan's 90-odd point contribution. So what do you think of Goldman Sachs,
United Health, and Caterpillar now?
4. Best Stocks for 2017? Leading investment managers took to the stage
on Thursday afternoon to give their best stock picks for the year ahead at the 2016 Sohn London
Investment Conference where they presented ideas with stock selections ranging from
commodity-oriented equities to retail to software and beyond. They are: Rio Tinto's (RIO–GB),
Israeli technology firm Mobileye (MBLY), Autoliv (ALV), Takata (7312.T–JP). Philips
(LIGHT–NL) as a buy since its spin-off of the lighting division in May. Sonae (SONI–PT) is
"overlooked and misunderstood" as the unjustified key reason for its stock price having dropped
50% from March 2015 peak. Opera (OPERA–NO) is suffering from investor fatigue, it should
benefit from strategic consolidation and is set to pay its net debt down to zero before returning
cash to shareholders. Portugal's premier cable operator, Nos (NOS–PT), due to its compelling
industry dynamics, growing top line, low leverage and falling capex spend. Walt Disney
Company (DIS), which some believes the company's real estate portfolio is vastly
undervalued. Budget airline Ryanair (RY4C–IE) a "disruptor" and likes the company's potential
to branch further into ancillary travel services. Charter Communications (CHTR) has not yet
achieved its potential. Take a closer look at these if they interest you. Best wishes.
5. U.S. Steel Wants to Accelerate Investments, Bring Back
Jobs. United States Steel would like to accelerate its investments and hire back laid-off
employees now that Donald Trump will be occupying the Oval Office, CEO Mario Longhi told
on Wednesday. "We already structured to do some things, but when you see in the near future
improvement to the tax laws, improvements to regulation, and those two things by themselves
may be a significant driver to what we're going to do." In addition, the belief that the U.S.
economy can grow at least 3.5% also adds to what the company can do, Longhi noted. "I'd be
more than happy to bring back the employees we've been forced to lay off during that depressive
period," he said, which could be close to 10,000 jobs. Shares of the Pittsburgh-based company
have soared about 80% since Trump's stunning victory on Nov. 8. Investors appear to be betting
on increased infrastructure spending, which the president-elect has promised, as well as further
restrictions on China-produced steel.
6. Apple is the 'big test case' for Trump Offshoring
Policy. Inside.com CEO Jason Calacanis told that Donald Trump's negotiations with Apple
will prove whether the president-elect can actually return offshored jobs back to the United
States. Beyond tweets and public appearances, the real estate mogul is yet to establish a clear,

4. consistent strategy addressing U.S. companies that hire abroad. "Trump obviously likes to
negotiate," Calacanis said referring to the recent Carrier deal. "He likes to bully you, then brings
you to the lobby, take a selfie and then have some victory laps with you." However, Calacanis
contends that if the president-elect wants to lure wealthier companies like Apple, he will need to
use more creative financial incentives. Calacanis said that Trump could offer tax amnesty to a
firm like Apple to spur domestic hiring and wage increases. Calacanis said that if Trump
combined tariffs on Apple products made in China with tax breaks for Apple products made in
the U.S., it might improve the U.S. employment situation. Calacanis also thought that such heavy
interference with Apple's operations "could be a disaster."
7. OPEC Deal: Big Opportunity for U.S. Oil to Exports to
Asia. OPEC's agreement last week to cut oil production is creating an opportunity for U.S.
oil producers to get crude into the hands of very valuable customers: Asian crude buyers. The
members of the Organization of the Petroleum Exporting Countries have vowed to cut a
collective 1.2 million barrels a day and are asking other oil producers to reduce output by
600,000 barrels a day. The long-awaited output limits are expected to make it possible for U.S.
producers to ply the expensive, complicated route to Asia from the United States. The stage was
set when the United States lifted a 40-year-old ban on exporting American crude last December.
Since then, much of the oil has gone to Europe, but now industry heavyweights are attempting to
extend those exports to Asia, a region whose oil consumption is growing.
8. Work while in Retirement. Half of employees say they expect
to work at least part-time while in retirement, according to a Transamerica Center for Retirement
Studies survey of 4,161 workers from earlier this year. Continuing to work is a necessity for
some, who need the income or health benefits. For others, retirement is a chance for a career
pivot. And very surprisingly, 28% want some form of work. Look for opportunities to take your
second act for a test-drive while you're still in your current job. Volunteer, or dabble in that
passion project as a part-time side job, or arranged to clock in two days a week through a job-
sharing arrangement with a colleague who also wanted to cut back on hours. Whatever your
motivation for working after retirement, here are ten great part-time (or full-time) jobs to
consider. 1) Start Your Own Business, 2) Work on Something You Love! 3) Travel Jobs. 4)
Consulting. 5) Volunteering, 6) Librarian Assistant/Aide, 7) Bookkeeper, 8). Personal and Home
Care Aide, 9). Handyman, 10) Medical Assistant… Good luck and best wishes for retiring.
Next Week: FED meeting next week. Monday-non-manufacturing PMI data and Tuesday-
durable goods orders, Thursday-Jobless Claims reports…

5. Again, these are my thoughts on the highlights of the week. Perhaps you should take a closer
look at them, do additional research and analysis, if these are interest to you. Always, you decide
with your own final analysis and position.
As always, I welcome your comments.
~ S. Vincent Shin
www.linkedin.com/in/vshin
Image credits to: vShin, Getty image, AP Photo, Reuters, CNBC...
Thanks to my format and image consultant YMU.