Despite various unfortunate events ranging from natural disasters to acts of terrorism, the stock market experienced a positive year in 2017. Now at the start of 2018, investors are anticipating what the market will do. Argus Research Group recently compiled a list of investing concepts to watch for in 2018. Here, we’re looking at eight of those concepts for investors to consider.

  • The effect of tax cuts on business. According to The Tax Foundation, tax reform could boost the U.S. GDP by 3.7 percent, increase wages by 2.9 percent and create an additional 925,000 full-time jobs. Thanks to the tax cut, experts are estimating that most large U.S. companies will get a 5 to 8 percent direct boost to earnings per share.
  • Consumer confidence.S. consumer confidence hit its highest level in almost 17 years near toward the end of 2017, according to Bloomberg. This means that consumers will likely continue to spend freely in 2018. Look for stocks in companies that sell luxury products and services related to entertainment and travel.
  • Interest rates. Experts estimate that the Federal Reserve is slated for steady interest rate hikes this year, but several companies may actually benefit from these higher rates. These include banks and insurance companies. Higher inflation could also help bolster commodity prices.
  • The recovering oil market. John Eade, CEO of Argus Research Group, estimates that emerging market economies like China and India are expected to grow by 4.8 percent in 2018. Emerging market demand for oil should keep oil prices up $58 per barrel in 2018 over $52 per barrel in 2017.
  • Rising purchasing power of millennials. As the largest demographic of consumers in the United States, millennials’ purchasing power could be significant in 2018. Focus on businesses that support concepts that millennials are passionate about, such as healthy living and clean eating, technology, environmental causes and others.
  • The digital age. Businesses addressing and solving the problems posed by the digital age will continue to perform well in 2018. Look to invest in entities that prioritize innovation.
  • Med-tech companies. Despite that big pharma stocks did not perform as well in 2017, med-tech companies that are not as highly regulated could be big performers in 2018. These companies are facing opportunities for international expansion as they are exposed to the growing healthcare market.
  • Socially responsible investing. As more major companies have started to take public stands on serious issues like climate change, hunger and poverty, socially responsible investing has seen a resurgence.

Pay attention to these investing concepts to watch for in 2018 if you are looking to strengthen your portfolio on the path toward successful retirement saving. If you would like to earn a reasonable rate of return on your money without dealing with the risk that comes along with stocks and mutual funds, contact the Ty J. Young Inc. team today at 877-912-1919!

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