Market Digest \u2013 Week Ending 12\/9\/2016\r\n\r\nStocks rallied on strong economic data and comments from the ECB suggesting its bond purchase program would continue for some time. Small-cap stocks again posted the biggest gains and are now leading large-caps by almost 10% since the election. The leading theory is that smaller companies are more focused domestically and will benefit most from Trump\u2019s policies, but the actual cause is impossible to know. The dollar rose and bond yields rose again, partly due to investors selling bonds and piling into stocks.\r\n\r\nWeekly Returns:\r\n\r\nS&P 500: 2,260 (+3.1%)\r\nFTSE All-World ex-US: (+3.2%)\r\nUS 10 Year Treasury Yield: 2.47% (+0.09%)\r\nGold: $1,159 (-1.5%)\r\nUSD\/EUR: $1.056 (-0.9%)\r\n\r\nMajor Events:\r\n\r\n\u2022 Monday \u2013 The ISM non-manufacturing survey rose to 57.2, suggesting strong growth in the US service sector.\r\n\u2022 Monday \u2013 Travel B.V. will seek up to $428 million in an IPO and renamed itself Trivago.\r\n\u2022 Tuesday \u2013 Blackstone announced it will issue and IPO for Invitation Homes, its division which bought up nearly 50,000 homes in the wake of the subprime crisis.\r\n\u2022 Tuesday \u2013 The EU approved Microsoft\u2019s acquisition of LinkedIn.\r\n\u2022 Wednesday \u2013 Initial jobless claims dropped, signaling the labor market remains strong.\r\n\u2022 Thursday \u2013 The ECB reduced its monthly asset purchase but said the program would remain open-ended. The Euro fell on the news.\r\n\u2022 Thursday \u2013 President elect Trump lashed out on a union leader (who represents Carrier workers) on Twitter who criticized his approach to keeping jobs in the US.\r\n\u2022 Friday \u2013 Exxon-Mobile CEO Rex Tillerson emerged as a leading candidate for Secretary of State.\r\n\r\nOur take:\r\n\r\nWith only three weeks left in 2016, now is the time to take care of calendar year tax related items if you haven\u2019t already. Required minimum distributions are at the top of the list if you\u2019re over 70.5 years old. Don\u2019t wait until Christmas week, as securities trades need to settle before cash can be disbursed.\r\n\r\nIf you\u2019ve got realized capital gains in taxable brokerage accounts, look to see if there are any meaningful losses you can take to offset them. Be wary of the \u201cwash sale\u201d rule which prevents you from buying back the same or functionally equal security for 30 days. Even if you don\u2019t have gains, you can deduct up to $3,000 in capital losses from your income.\r\n\r\nFinally, if you\u2019re not happy with you\u2019re the strategy for your investment portfolio, now is a great time to make changes. There is nothing particularly magical about doing so this time of the calendar year, but since you\u2019re addressing your finances anyway it\u2019s in your best interest to start the new-year with a portfolio that is working as hard as it could possibly be for your retirement.