As someone who’s been managing money now for over 30 years, I can confidently say that 2018 is already off to a fantastic start. Here are the three main sectors that my firm and I continue to like and believe will do great this year.
Financials One year ago we said to expect higher interest rates. What happened? Well, we ended up with 3 interest rate increases! That was great news for the financial sector, and with 4 interest rate increases set for 2018 as well, this sector will continue to succeed. We especially like Bank of America and think it still has some great potential.
Technology Technology has always been an industry we’ve liked. Tech was the leading sector of 2017 and we believe it will continue to do well in 2018. I’m talking about those big tech names, including Facebook, Apple, Amazon, Netflix, and, our top pick for the year, Tesla.
Emerging Markets The recent tax cut has made companies much more competitive overseas. The cut took tax brackets from 35% to 21%, and this really helps moves the market. It’s one of the reasons we’ll be looking at emerging markets again in 2018 and believe it may even be a better value right now than the US.