- A calendar-year forecast for 2017 is even more difficult than usual because of the uncertainties accompanying the new regime in Washington
- Proposed tax reform, deregulation and fiscal stimulus could be good for the economy
- Despite Republican control of Congress and the White House, there is no guarantee that such reforms will occur
- Potential trade wars and the ballooning deficits from unfunded military and infrastructure spending are significant risks
- Interest rates and inflation will need to be monitored closely
- The strengthening of the dollar has beneficial and detrimental effects to the U.S.
- Despite the uncertainties, we are positive in our outlook and expect equities to outperform cash and bonds