How can politics impact your portfolio?

Below are few factors that need to be watch in 2017 that could impact your portfolio. 

  • Possible Corporate Tax Reform – A decrease in corporate taxes should benefit all companies, especially the ones that are headquartered/registered in the United States and currently pay the 35% corporate tax rate.
  • Infrastructure spending –  Technology plays a big role in today’s infrastructure. Industrial and materials should also benefit from this trend.
  • Healthcare – Repeal and Replacement of Obamacare is another area to watch that could affect insurance companies as well as health care providers and drug pricing.
  • Fed decisions – Interest rates increase correlate negatively with bond prices. Bond funds could lose value if interest rates keep going up.
  • Major foreign developments – France and Germany both hold presidential elections in 2017. Uncertainty can move markets.

In summary, there are multiple factors that could impact your portfolio in the coming years. Consult a professional for your personal asset review to make sure your portfolio is structured to match your goals and expectations.

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