Shifting market and economic currents will make diversification the underlying theme for choosing the best Vanguard funds for 2017.
The 2016 Donald Trump rally can continue into the coming year with sustained economic growth to support it. The challenge for investors, however, is that capital markets may get overheated. Stock prices are already getting ahead of the fundamentals as it is.
Also, a strong U.S. dollar and uncertainty over the timing and intensity of any 2017 interest rate hikes will shift market leadership among equity sectors as well as fixed-income instruments.
All of this makes for a ripe environment for volatility and possibly a significant correction in 2017.
In 2017, as in any calendar year, smart investors will ignore the short-term noise and instead focus on larger cyclical trends. With this philosophy in mind, it’s wise to hold the best types of mutual funds that tend to lead the market in the late phase of the business cycle.
Keeping in mind the shifting market and economic currents, while shoring up portfolio structure with solid core holdings, we offer up these 10 best Vanguard funds to hold in 2017: