Stock markets continued their remarkable rise during the fourth quarter. Stocks rose every month, and, in fact, have risen for 14 straight months through year-end. Volatility remains eerily low. Virtually every sector and geographic region had positive results. Bonds gained value in December and ended the period with a small positive return. The global economic recovery gained strength and the Fed raised short-term rates again. A large corporate tax cut was signed in late December, and this provided further impetus to the stock market rally.
