Emerging Markets (EM’s) might be the place to be the next 12 months.
After nearly 10 years of sideways action, it made a perfect head and shoulders bottom in 2016. The Chinese government is cutting taxes across the board. The Chinese government is increasing its efforts to open its country to attract foreign money. Chinese officials understand how important capital inflows from outside investors is going to be over the next decade.
I believe the Federal Reserve is done raising interest rates. Maybe one or two interest rate hikes over the next 18 months. Whenever investing in EM’s, a close eye should be kept on the USD.
Sideways or downside action in the USD will be bullish for the EM’s. If the USD takes a run to its decade high of about 103, this will put series pressure on EM’s.
I still like US stocks and tech companies. Facebook, Google, Cisco and Apple are favorites of mine. I have had a very large holding in them for a long time.