2016 defied many expectations in the investment markets. This isn’t unique to 2016. Actual returns are usually far different from most predictions.
This makes a lot of sense. Most of the information used in making predictions is already priced into the market. For example, if employment is picking up and everybody knows that, then the investment markets will have already moved in anticipation. The information that will effect the markets moving forward will be new developments. Even well known forecasters can get it wrong. George Soros predicted that 2016 could be similar or worst than 2008.
There were two big drops in 2016. The markets started the calendar year dropping quickly. Some in the media were saying this was the beginning of the worst market crash ever.
Second was right after the Brexit. Again, many said this would plunge the world into a depression, and very few predicted how quickly the markets would recover after the Brexit.