In 2017, our firm was overweighted in financial services. A year ago, we said that interest rates were headed higher, and we had 3 interest rate increases! That helped our portfolios succeed.
This year, we’re expecting 4 interest rate increases. This is good news for financial services and big banks. Plus, I think Bank of America has been an unbelievable mover and still has some great potential.
In addition to financial services, our largest weighted sector in 2017 was Technology. It was also the top performer last year, and we think it will do well again this year. Facebook, Apple, Amazon, Netflix, and Tesla (which is my top pick this year) are ones to watch.
- Emerging Markets
Lastly, we’re going to see even more money move to emerging markets. We’ve liked this sector for a while now and we continue to think this is a good place to focus. In fact, I believe that emerging markets offer better value than the US right now.
Thank you for the opportunity to work together! I’m looking forward to a great year.