Looking ahead to 2018, the Fed wants to try and bump up interest rates as well as push inflation higher. It as been steady these last few years and that has not been the objective. From the looks of things, it would be safe to say we can expect three or four rate increases this coming year, which will do well for investments but hinder consumer lending. Also, with Yellen being replaced, we could see a shift in how the Fed operates.
Bitcoin and the cryptocurrency market will remain in focus for 2018 as major exchanges bring futures products to the market, allowing traders to short the market and trade on a reliable exchange. Many are speculating a large boom or large bust for Bitcoin, but it remains to be seen which is the most likely, given more people are backing it each day. Retail struggled in 2017 with the closure of many high profile brands. Retail ETF ticker XRT shows a light gain at the end of the year, which pales in comparison with the greater market. 2018 could prove to be a recovery year, but once 2017 Q4 numbers being rolling out, it will be a true indication on how the retail sector is doing.
Notable products for 2018 include Apple’s home device that was due to launch in winter of 2017 but was pushed out further. Apple’s iPhone X hit the market just before the holiday season, and those sales will be important given Apple relies on iPhone sales. Also, Spotify will likely go public late Q1 or Q2 of 2018, which many will be watching. Spotify is a music streaming platform that is used by millions.
2018 is shaping up to be a solid year given the atmosphere of the market. Equities might cool off but nothing indicates a large pullback. However, do not be complacent and always balance your portfolio. Annual reviews are a must and offer people a chance to reallocate before a new investing year.
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Try AI Portfolio ArchitectNathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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