Of course, no one knows for sure, but I thought you might be interested in the latest opinions I have received recently.
Tailey Leger, equity strategist for the Oppenheimer Funds states that she expects the large cap rally to continue for at least two more years.
Here is the thinking that supports this position:
- A weakening U.S. dollar and strengthening international economies are key reasons. The foreign exposure of U.S. large cap companies results in 30% of the S&P 500 revenues coming from outside the U.S.
- If the president comes through with tax cuts for businesses, it may create more opportunity for growth.
- The Federal Reserve is committed to normalizing monetary policy and flattening the yield curve. Historically large caps have outperformed small caps by an average of 1.8% in flattening yield curve regimes.
Please contact me to discuss your personal objectives and portfolio strategy.
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®