You’ve probably noticed in the news that financial advisors offering retirement products and services are required to put their clients’ interests first as of 9 June 2017. This new regulation, known as the Department of Labor (DOL) Fiduciary Rule, won’t be enforced until 1 January 2018. To comply with the rule, brokers must transition their retirement products and services to the DOL fiduciary standard from the suitability standard required by Financial Industry Regulatory Authority (FINRA) Rule 2111, which allows them to offer their clients solutions that may not necessarily be in their best interests.
The market continued its steady advance, albeit with fits and starts during the month. The 1.6% “correction” of May 17 – the biggest losing day of the year so far - lasted all of one day. Anyone trying to time that decline missed it if they blinked. By the end of the month, the S&P 500 was up 1.4% (8.66% YTD), thanks to technology driven names that now comprise nearly one-fourth of the index.
The bulls continued their stampede that began in November as the market continued to advance into the first two months of 2017. From a close of 2,140 on November 8, 2016, to the close of 2,364 on February 28, 2017, the market advanced a bit over 10%. The Dow followed right along. While the S&P 500 index is up 5.45% year to date through February, certain groups have underperformed, as so-called sector rotation worked its way through the market.