2016 has been pretty interesting for investors. The effects of political shifts in certain countries reverberated worldwide. The market has been pretty unpredictable.
2017 is still in its infancy, so there is still time to be wise a propos certain market trends.
One economic trend would be a heightened emphasis on United State stocks. Of course, one should not abandon international equities altogether, but it will pay to consider giving more weight to US companies. This is mainly driven by the assumption of power of President Donald Trump.
Forex-wise, 2017 could also be the year of a stronger US dollar. To minimize some of the risks that will drag in, investors might want to look into certain mid-cap and small-cap US companies because they have less of an overseas focus compared to their larger-cap counterparts.
Lastly, one should never discount the benefits of a globally diversified portfolio. This is a result of the anticipated stimulation measures on the part of central banks across the globe to promote further economic growth. Allocations to international developed and emerging markets are therefore strongly encouraged.
Charles Whitman is an investment strategist based in Chicago. He is the founder of Whitman Asset Management, a firm providing alternative investment programs that target exceptional risk-adjusted returns. For more information, visit this website.