First Quarter 2017 Investment Outlook
- Solid equity gains in 2016, supported in the fourth quarter by a beta-driven rally following the presidential election, have resulted in extremely rich valuations at year-end.
- The U.S. market remains vulnerable to any disappointment on current policy, economic and corporate earnings expectations, which increases the potential for near-term volatility.
- Policy infrastructure that can accelerate or impede the progress of investments in more sustainable areas is expected to be much more difficult in the Trump administration than in the Obama administration.
- The transition to cleaner energy and low-carbon technologies is driven far more by economics and technology than by policy.