By: Lisa Thuer - Senior Trading and Research Specialist
What a contrast from how last January started. It is almost the reverse of stocks that were down last year are up this year. As we have stated before, last year was a difficult year to navigate. You may ask yourself, won't this year be just as difficult with the new regime now in office? What happens now and where do we go from here?
Earnings season is upon us and corporate earnings have thus far been positive. Businesses are optimistic with potential tax cuts, infrastructure spending, employee benefit costs and reduced regulation. Bringing earnings back from overseas would be a bonus for shareholders and the stock market. However, this all takes time and we still need to keep both hands on the wheel. We know in the political world not everything gets done as planned nor as fast as we would like it to.
So regardless of your views on our current Commander-in-Chief, we still want America to succeed and we are all Americans. We all want our portfolios to increase regardless of who is in office. Now with all the election noise behind us and some will probably continue, we are moving forward. Towards the end of last year we started adjusting investments going into 2017. There will be additions to current holdings and reducing others. We still continue to like dividend payers, technology, consumer discretionary, financials (regional banks), and small companies. We will continue to hold alternative investments, however we will be reducing our holdings and allocating funds towards growth or income based the portfolio. As stated above, we will remain diversified and weather the storms and the tweets.
As always, do not hesitate to contact us should you have any questions or would like to come in and meet with a KFA team member.