The financial world is seeing its hottest streak with the best start in many years, fueled by skyrocketing U.S. markets. The surge came despite global trade fears, political instability in Washington and geopolitical tensions. The euphoria surrounding the new U.S. tax legislation, robust corporate earnings and optimism on global growth are acting as the key catalysts.

A massive $1.5-trillion tax cut will create an economic surge, boosting job growth and reflation trade. It will further accelerate earnings, leading to increased dividend and buyback activities. Additionally, the tax repatriation will allow companies to bring offshore cash back home, paving the way for increased mergers and acquisitions. A combination of other factors like rise in oil prices, a weak dollar and rounds of upbeat global economic data also bolstered the appetite for riskier assets.

Further, rising rates in the United States as well as the end of cheap money era internationally is boosting investors’ confidence in strengthening economies, thereby leading to further growth in the stock market.

Given this, we have highlighted some investing ideas that could prove extremely beneficial for investors this year in the bullish market:

Make Trending Sectors Your Friend

Technology and financials have been at the heart of the rally this year. Technology stocks will continue to benefit from encouraging industry fundamentals and Trump’s repatriation policy. Per Moody’s, the top five U.S. hoarders are from the technology sector, namely Apple (AAPL – Free Report) , Microsoft (MSFT – Free Report) , Cisco (CSCO – Free Report) , Alphabet (GOOGL – Free Report) , and Oracle (ORCL – Free Report) , which hold 88% of their money overseas. On the other hand, financial stocks will enjoy the dual tailwinds of lower taxes and rising rates. Tax reform may result in a further rise in interest rates that would expand net margins and bolster banks’ profits.