While 2017 got off to a great start for investors in global equities, we believe that it is important for investors to take note of some potential key areas of changing market leadership that started to take form during the 1st quarter. These include, but are not limited to, the following:

Domestic Equities – To – International Equities

Developed Market Equities – To – Emerging Market Equities

Value – To – Growth

Small Cap – To – Large Cap

Energy-based Commodities – To – Metals-based Commodities

Financials/Energy/Telecom – To – Technology/Health Care/Consumer Discretionary

While we remain optimistic about the potential for U.S. economic growth and U.S. stock market gains, with limited and measured interest rate increases from the Federal Reserve, in 2017, short-term periods of volatility are likely given so much geopolitical and domestic policy uncertainty. As a result, investors would be wise to build, or maintain, balanced and diversified portfolios consistent with their own financial objectives, tolerance for risk and investment timeframes while resisting the temptation to make short-term investment decisions based upon potential fiscal policies or economic events. With this in mind, we suggest the following portfolio management ideas at this time for careful and thoughtful consideration.

• Consider adding international allocations to globally diversified portfolios

Despite concerns over the outcomes of certain upcoming elections overseas (ex. France), international equities, through International Developed Market, and some International Emerging Market, stock allocations, are worthy candidates for allocations within a globally diversified portfolio as a result of the anticipated stimulation measures on the part of central banks across the globe in 2017 needed to spur additional economic growth.