Stock valuations remain high, and investors continue to search for ideas as to what investments possibly have room to grow in 2017. The question may not be what will appreciate in 2017, but in fact, what asset classes will lend the greatest total return? By focusing on securities generating solid income, investors can mitigate some appreciation risk. Barron's recommends several ideas that I solidly agree with, such as U.S. equities. In particular, while performing some personal equity research this morning, I found that consumer staples stocks may be a good investment, due to their decline since the election. I tend to be more of a value investor - however, I also bought AMZN at it's high this morning.
Despite the high valuation of U.S. equities, it is difficult to find an asset class that has a greater return potential. International developed equities have some room to run, however, the U.S. economy looks more solid, especially with an incoming pro-America president. Bond yields will continue to decline over the next few years as the Fed slowly raises rates, so prices will decline. As an almost 26-year old, I am not too interested in fixed income, anyway. The caveat to that is high yield. With its equity-like characteristics, I may purchase some HYG over the next few months, depending on the business agenda post-inauguration.