1. It’s going to get complicated. The global economy is strengthening but there are crosscurrents, including rising interest rates and changes on the way trade issues are addressed.
2. Central banks are winding down unprecedented levels of monetary stimulus. At the same time government policy and spending are stimulative.
3. The geopolitical climate remains unsettled. Elections are being held throughout the world and the electorate is looking at new faces.
4. China has confirmed that leader Xi will be in office as long as he wishes. His rule will impact China’s economic development and foreign policy.
5. The search for income will continue as the Federal Reserve has far to go before fixed income investment becomes appealing for the retail investor.
6. Current low default rates may change as public pension plans come under increased pressure as the elderly begin to outnumber the young.
7. Two-way markets return following the post-election bounce that saw a smoothly rising market with no meaningful interruptions.
8. Active management is set to recover its value as some of the components of popular indexes become significantly overpriced.
9. Finding opportunities and avoiding “torpedo stocks” becomes a challenge for individual investors and fund managers.
10. Planning becomes critical as an aging population will be spending decades in retirement even as pensions and social security come under pressure.
If these issues trouble you, getting professional assistance and creating a financial plan may help you navigate the uncertainty of 2018.