As we end the first quarter of 2018, the year started out strong with huge gains in the stock market. Unfortunately, we've also had a few dips to date and it's this kind of volatility that Debbie Boisselle, VP Investments for Citizens National Bank, expects us to see throughout this year. She recently presented her economic outlook for 2018 to Citizens Wealth Management Group customers based upon information from LPL Financial, the nation's largest independent broker-dealer.
According to Boisselle, "The U.S. is currently in a mature market and we're finally seeing normalization with expected 3% real GDP growth and the potential for 2% inflation in 2018. The market we saw in 2017 with double digit stock returns across the board was not sustainable." She expects consumer expenditures to continue to rise which will contribute to positive real GDP growth and stock returns to be in the 8-10% range, with bonds remaining flat. Looking at investment opportunities, Boisselle feels there will be good returns with small cap stocks which are U.S.-based and will see a positive impact from the recently passed tax cuts. She also feels there will be good growth in emerging markets. The global economy grew 4.5% in 2017 due to countries such as the Philippines, Morocco, Hungary, and Brazil growing. She cautions against foreign and long-term bonds.
"I feel this is the year for investing in workplace productivity," states Boisselle. Many businesses have stockpiled cash and will begin to look for ways to invest in technology and improve efficiency this year.
Overall Boisselle is optimistic for 2018 being another good year with more of a focus on business spending and predicts we will see attractive returns, just not as good as 2017. To view her presentation, visit our YouTube channel - https://youtu.be/Q2n4afLJlGU
Fore more information about Citizens Wealth Management Group, visit their website at www.cwmgohio.com.