Rough start to the year? The rest could be better
This year has unfolded into perhaps the roughest start of any recent year on record for corporate profits falling; Sears, Wal-Mart and Macy's closing stores; and the Dow plunging as low as 500 points this week.
And more volatility is expected.
So if this is how January been, what's in store for the rest of the year? We posed some questions to suburban experts and here are their thoughts on what we can expect:
How will the volatile stock market affect local businesses?
"Stocks are likely to face the same obstacles as those seen in 2015. On a positive note, historically, the year following a flat year has been very positive. Using that criterion, 2016 should be a good year," said David J. Klein, senior vice president/financial adviser for The Auctus Group RBC Wealth Management in Buffalo Grove.
"Diversification still remains very important. While the energy sector was the worst performing sector, the consumer discretionary and health care sectors were very positive. In any one given year, investors should expect at least two to three corrections per year. Going back to 1980, there has been a correction of at least 5 percent in the Dow every year except for one year. Market volatility will continue," Klein said.
What are your thoughts about businesses leaving Illinois in 2016?
"Tax rates in Illinois pose some challenges for both large and small businesses," said James L. Hamilton, certified public account and partner with Weiss & Company LLP in Glenview. "In addition, most believe we should expect some type of a tax increase in 2016.
"However, Illinois still offers some attractive tax credits for businesses, including a research credit, employment credits, job creation and more with the goal to become a state that keeps businesses here and attracts new ones. There will be a great deal of pressure on state and local governments to find new revenues and control spending, but it appears that we have the people in place who recognize the issues and are willing to do what it takes to transform Illinois into a destination state for businesses."
What is your job outlook for this year?
"Domestically, it appears that wages are set to pick up," said Highland Park resident Jack Ablin, chief investment officer of BMO Private Bank in Chicago.
"After years of improving labor conditions, there are now only 1.5 jobseekers for every job opening. That's down dramatically from nearly 7 per job when the world was falling apart 7 years ago and is now below the figures reached at the height of the previous economic expansion."