Entering the World of Trump

Tuesday, January 3, 2017 - The year 2016 was one that defied expert predictions from the expected Federal Reserve rate hikes, rises in energy, company bankruptcies, oil prices to the outcome of the Brexit referendum and the surprise upset of Donald Trump winning the US Presidency.

With lingering clouds in Europe, including bank insolvencies in Italy and the upcoming elections in both Germany and France, as well as the inherent challenges that the new President-Elect will encounter after January 20^th, 2017 promises to be a riveting year fraught with many potential bumps that could derail the Trump rally.

Despite 2016 starting on a rough road in Q1 with the S&P 500 being down over 9% by mid-February, the equity index rallied to end the year up with a total return of at 9.79%. With oil prices stabilizing, housing prices up, increasing consumer confidence, the rally in stocks seems likely to continue despite headwinds from a strong dollar. The US Bond Market is likely to remain choppy as the markets revalue interest rates and various types of fixed income instruments under a Trump Economic Reflation Strategy.

Looking at our ETFG Quant List, we see significant percentage gainers in increases for Russian Equities ERUS as well consumer staples with VDC, KXI, FXG and PSCC.   Interesting HUSE – the US Equity Rotation Strategy ETF moved up over 27% last week.  On our Behavioral scores, JDG, JPN, HAHA and EEMA reflecting Japanese equities, benchmark China CSI 300 and the iShares MSCI Emerging Markets Asia ETF respectively moved up as well. Consumer and Asian ETFs also moved up in our Fundamental Ratings. Investors however should keep reserves to be prepared to take advantage of any “Black Swan” Events.

We wish all of our readers a Happy, Healthy and Prosperous New Year - thank you for reading ETF Global Perspectives!

ETFG 21 Day Free Trial:  https://www.etfg.com/signup/quick

____________________________________________________________

Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice.  ETF Global LLC (“ETFG”) and its affiliates and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively ETFG Parties) do not guarantee the accuracy, completeness, adequacy or timeliness of any information, including ratings and rankings and are not responsible for errors and omissions or for the results obtained from the use of such information and ETFG Parties shall have no liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of such information. ETFG PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE.  In no event shall ETFG Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the information contained in this document even if advised of the possibility of such damages.

ETFG ratings and rankings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. ETFG ratings and rankings should not be relied on when making any investment or other business decision.  ETFG’s opinions and analyses do not address the suitability of any security.  ETFG does not act as a fiduciary or an investment advisor.  While ETFG has obtained information from sources they believe to be reliable, ETFG does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.

This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.  Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.  Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested.  Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate.  Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor.