The 2018 investing outlook

After a strong year, the 2018 outlook appears positive, but not quite as ideal as last year.

Investors enter 2018 coming off a year with near record levels of risk and return, a strong global economy, and potential benefits from tax reform. What will the year hold? Fidelity experts weigh in on the economy and markets.

Markets: 4 key drivers

The backdrop looks positive, but not the Goldilocks setup of 2017.

Economy: global growth continues

The expansion should continue, but may not be as perfect.

Bonds: navigating rate hikes

Bonds still offer diversification potential, but face high valuations and rate hikes.

Sectors: 2018 idea roundup

Ideas include banks, tech-enabled health care, 3-D sensing, and more.

US stocks: Late innings

Valuations are up, but there may be opportunity in financials and energy.

International stocks: global growth

Growing economies and lower valuations may support foreign stocks.

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Past performance is no guarantee of future results.
This information is intended to be educational and is not tailored to the investment needs of any specific investor.
Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Foreign investments involve greater risk than US investments, including political and economic risks and the risk of currency fluctuations.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.
Sector investing can be more volatile because of their narrow concentration in a specific industry.

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