Politics were the focus of many investors during the fourth quarter of 2016. As the election approached in November the market reacted daily to the shifting probabilities of a Clinton or Trump win. During the campaign, a win by President-elect Trump was viewed as bad for stocks; paradoxically the market has risen post-election in what is being dubbed the “Trump” rally. During the quarter, positive stock market returns were aided by an earnings reporting period in which aggregate reported operating earnings growth was positive for the first time since 2014.
Financial Services companies significantly outpaced the broad market averages in the fourth quarter. Banks were the best performing industry within Financials. Financials rallied on the potential for regulatory relief under the Trump Administration, a steepening yield curve which improves profitability for many Financials, and an improving economic outlook. The Saratoga Financial Services Portfolio posted strong returns during the quarter. The Portfolio benefited from favorable stock selection in Consumer Finance, while holdings in Real Estate and an underweight in Banks detracted from performance.
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 1/16 © Saratoga Capital Management, LLC; All Rights Reserved.