Investment Ideas For Final Quarter of 2017 Given By Frederic Sealey
2017 started with a great time for investors in international equities with new investments, at the same time Frederic Sealey, the American entrepreneur with extensive experience in capital investment believe that it’s really necessary for the investors to take important notes of some of the key areas of ongoing market leadership that keep changing during the first quarter.
These changes include following things from Domestic Equities to International Equities, Value to Growth, and Small Cap to Large Cap and Developed Market Equities to Emerging Market Equities. The business world saw the investments shift from Energy based commodities to the metal-based assets. There has been a gradual shift from Energy, Financials, and Telecom to Healthcare, Consumer Discretionary, and Technology.
While the capital investment expert Frederic Sealey predicted the optimistic potential for American economic growth and stock market profit in 2017, the measured and limited interest rate rise from Federal Reserve are likely to be volatile for short term because of the many domestic policy and geopolitical uncertainty.
Due to which, investors will start building, maintaining and balancing the diversified portfolio to keep the consistency with their personal financial objectives, investment time, risk tolerance while keeping from the resistance of temptation to create investment decisions on short-term basis based fiscal policies of various economic events. With all this in mind, Frederic Sealey Consulting suggests that the following investment ideas are needed to be implemented and carefully considered for the final quarter of 2017.
Add International Location To Create a Diversified Portfolio
Despite the fact that some of the countries such as France etc. have upcoming election time global equities through the internationally developed market and other emerging stock allocation markets are worthy of creating a globally diversified investment portfolio due to the anticipated stimulation on the central banks part across the world for higher economic growth.
Go With the Trend in Ever-Changing Area of Market Leadership
As stated before, the outperformance of international equities over domestic equities during the first half of 2017, Frederic Sealey believes that investors should take note of important areas where the market leadership is constantly changing and growth is outperforming the value. This will further help investors to keep in the loop and accordingly make the necessary changes as per the trending market scenarios for the consistent progress. The changing market leadership will also provide you enough exposure to learn what’s new and profitable and where can you invest for long term.
Don’t Ignore The Value of Your Fixed Income In Growth and Income-Related Portfolios
For investors who have fixed income, bonds can be really dependable and have great potential in consistent streaming of principal and income protection when matured. The bonds can be from the government, municipal or corporate, they all can provide compounded potential growth whenever the returns received from these bond gets reinvested.
Additionally, for the full-time investors who focus on growth, fixed income can give diversification and downside protection within the growth portfolio especially when the market is highly volatile and short-term measured flights are likely to exist.
After analysis the changing trend during the first two quarters of 2017, Frederic Sealey feel that investors should not miss the opportunities related to income and the diversification offered by the financial bonds in a timely manner and potential changes in the rate of interest. Historical records have shown that trying to time market and interest rate can get really difficult. Therefore, it is important to realize that whenever the rate of interest increases, the bond prices can fall and the total yield may increase. However, the growing interest rate should not put any impact on the interest that bondholders receive on their holding. Also, they should not change the investor’s ability to receive the complete value of the bonds at the time of maturity.
While the bonds allocation and with other income securities can vary depending on the different market conditions and risk appetites and investor objectives, there are different types of bonds from different issues who can still find the profitability in most of the investment portfolios throughout the market cycles.
Consider Trump Trading Sectors For Potential Long-Term Growth
Even though Donald Trump’s initiatives are repeated changes or can take a longer time to achieve or may not even come to practical implementation with the expected intended result, investors should take a wise step in considering the allocation of their investments into the areas of American stock market that are getting benefited during Donald Trump’s presidency. Some of these sectors are service sector, energy equipment, defense, banks, and cyber security.
While there are many business experts who have suggested that large-cap may face some struggle to move little higher due to the current valuations, the strength of stock performance during the first quarter and potential threat posed by growing dollar against many multi-national companies with large-cap stocks, there is still some possibility of upside for U.S based large-cap stock market. U.S. mid-cap and small-cap are currently adding to the value but at the same time the large-cap should not be discounted completed understanding the fact that all three capitalization’s are trading expensive than their long-term averages.
To conclude, investors should avoid all the noises about volatile and short-term market collapse and focus on basic asset allocation. So, if you are thinking of where to invest? Equities are simple and effective option. Always look at the holistic approach to your financial situation to deploy your capital.
Finally, investors should consider the asset and trend classes that are least affected by the policy change in the government. The population growth, ongoing urbanization, technological innovation, and aging are also creating opportunities for a long term in many places such as impact and equity investments in the emerging markets all across the world. If investors are looking forward to growth and protect their wealth more effectively they need to diversify their portfolios across the regions, themes, and asset-based classes and should embrace the ideas that will serve them well in the coming year ahead.