Slower economic growth is still growth and we expect aggregate corporate revenue and earnings to continue advancing, which can support higher stock prices. In this environment where the U.S. may lead economic growth in the near-term, investors may want to pivot their exposures away from areas that are more vulnerable and emphasize areas that should benefit.

For instance, we recently made some changes in our tactical equity allocation to focus more on U.S. led revenue and earnings growth by adding an allocation to internet-related equities along with healthcare equipment. We favor internet stocks since they reflect consumer and business preferences for internet-related services, such as shopping and entertainment. Healthcare equipment reflects our confidence in that industry as the world’s wealthiest society ages. Importantly, both of these areas rely heavily on the U.S. economy for revenue growth.

This article was written by Gary Stringer, CIO, Kim Escue, Senior Portfolio Manager, and Chad Keller, COO and CCO at Stringer Asset Management, a participant in the ETF Strategist Channel.


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