Many are looking at stock exchange traded funds in the year ahead to adapt to changing market conditions, but investors should still pick their spots.
ETF Trends publisher Tom Lydon spoke with Ed Lopez, Head of ETF Product Management and Marketing at VanEck, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about what financial advisors and investors should be looking out for in 2017.
“Right now for 2017, we’re really thinking about a change in investment dynamics – rising interest rates, change in policies with the new administration” Lopez said. “We’re talking to advisors about a rotation to equities.”
Lopez argued that policy changes, such as lower corporate taxes, deregulation and fiscal spending, are all good for the riskier equities market.
“Longer term, I think that the case for equities is there,” Lopez said. “Short-term, I think, maybe, valuations might be a little stretched, so you have to pick your spot.”
However, investors should still keep in mind that stocks never act as expected and may experience bouts of short-term volatility.