It’s been a good year for investors, but it remains to be seen whether they get rewarded or punished in the final stretch of December. A lump of coal from Santa remains a distinct possibility.

That said, last week ended on a note of optimism. Unexpectedly strong economic data stole center stage from disappointed trade-deal expectations.

The U.S. Labor Department last Friday released a November jobs report that showed robust job gains, rising wages, and a return to a 50-year-low unemployment rate. Here’s a distillation of the good news that propelled stocks sharply higher on the last trading day of the week:

• Change in non-farm payrolls: a gain of 266,000, crushing consensus expectations of 180,000 and far exceeding the 156,000 gain in October
• Unemployment rate: 3.5% versus 3.6% expected and 3.6% in October.
• Average hourly earnings month-over-month: a rise of 0.2% versus +0.3% expected and +0.4% in October
• Average hourly earnings year-over-year: +3.1% vs. +3.0% expected and +3.2% in October.

It was a blockbuster jobs report that sent stocks soaring Friday. The week closed on a mixed note, but the year is heading for healthy gains (see table).

The bright jobs picture is boosting consumer confidence, which points to a prosperous holiday shopping season. But a host of factors could still derail the momentum for a rally.

A brush with the bear…

Let’s flashback to the first week of December last year. The yield curve inverted, spooking investors and sending stocks into a tailspin. The November jobs report fell short of expectations and trade talks were unraveling. That first shaky week presaged a decline in stocks of nearly 20%.

But there’s plenty of reason for cautious optimism for the waning weeks of December.

The Federal Reserve meets again this week to announce its rate policy. Expectations are for the Fed to leave rates alone, especially in the wake of last week’s powerful jobs report. With low rates still in place, share price appreciation stands a better chance of continuing.

Money supply growth exhibits a close correlation with stock price movements. An increasing money supply boosts stocks; decreasing money supply puts the brakes on stocks. Historically, Fed tightening has been a major trigger for the death of bull markets. The Fed probably won’t lower rates again this week, but neither is the U.S. central bank likely to raise them.

Real rates (adjusted for inflation) hover near zero. That means consumers and businesses are getting plenty of stimulus during the holiday season. About 70% of U.S. gross domestic product is consumer spending and about 70% of that spending occurs during Thanksgiving-Christmas.

The bull run should continue for the rest of the year, but a lot can still go wrong. President Trump is about to get impeached, the trade war is far from over, and other key indicators (notably manufacturing activity) are sputtering around the world.

One reason Trump likes tariffs is that they are one of the few tools that a president can unilaterally wield. Tariffs also provide a convenient carrot-and-stick approach not just for countries but individual companies and sectors. This under-reported aspect of the trade war is one reason I don’t think it will end before the 2020 election.

The younger traders who toil at the intersection of Broad and Wall are personally familiar with only a bull market. They started their careers during economic expansion. They never lived through a severe downturn. But the seeds of crashes are planted by the lack of historical perspective. Naive investors are often shocked — shocked! — when they discover that stocks also go down.

All-season profits…

Looking for one sector with tailwinds regardless of the season…and regardless of what happens in Washington, Beijing and Moscow? I’ve been writing a lot about 5G and with good reason.

Read This Story: Catch The Next Big Investment Wave

The global implementation of the “fifth generation” of wireless technology will revolutionize our lives and enrich early investors who jump aboard the trend.

The global trade war isn’t just a battle about jobs and lost jobs. It’s about who controls the future. 5G is a key to that future.

Experts predict that over the next 15 years, 5G will add $3.5 trillion to the U.S. economy and as much as much as $12.3 trillion to the global economy.

In today’s fast moving, interconnected global economy, change occurs at the speed of fiber-optic light. You can’t afford to stand still. For details on the hottest investment opportunities in 5G advanced wireless, click here for our latest report. For investors, 5G should bestow the gift that keeps on giving.

Questions or comments? Drop me a line: mailbag@investingdaily.com

John Persinos is the managing editor of Investing Daily.