2018 Outlook and Investment Preferences
2017 will go down as an unprecedented year in the financial markets and 2018’s outlook looks good but not without risks.
There are plenty of risks that worry us. We think investors should monitor these risks going forward because investing will not be as easy as it was in 2017. We also have some sectors we like overweighting for 2018 which could help investors navigate a more challenging environment.
The financial markets for 2017 will almost surely go down as an unprecedented year and one that defied expectations. Heading into and following the 2016 presidential election, there were many nervous investors who were concerned that a Donald Trump Presidency would derail an historic bull market. Those predictions were as bad the 2006 New York Times who predicted Apple would “probably never” release a cell phone (the following year Apple released their first iPhone)! Predictions make for great headlines and brain candy, but in the investment arena, they often result in lackluster returns. 2017 was a classic example. For this reason, we do not give them much credibility. Instead, we prefer to monitor, evaluate and adapt to changing economic conditions.