As we enter the holiday season with Thanksgiving on the horizon, a year-end review along with a post-election update is timely.

The two most important items that have occurred since the election are a dramatic rise in interest rates as well as a rise in the overall equity markets. The markets have reacted to the expectation of policies that may prompt economic growth, which historically have led to higher interest rates. A higher rate environment is indicative of inflationary pressures, a by-product of an expanding economy as wages and earnings rise.

There are a number of sectors that are expected to prosper from a Trump presidency, many of which have underperformed for the past 5-8 years.

So currently, I am compiling a number of companies in the following industries as probable allocations to various portfolios:

Manufacturing

Construction

Infrastructure

Defense

Energy Including Oil, Coal, Drilling, Natural Gas & Oil Services

Heavy Equipment

Transportation

Pharmaceutical

Biotech

Incidentally, the market rise since the election might very well be over done, meaning I foresee a pullback before year end as the markets wait to see how the Trump cabinet appointments settle out. Several of these appointments are instrumental in orchestrating the direction of various industries, taxes, regulations, and economic policies.

I will keep you posted as we get closer to opportune buys.

As always, feel free to call with any questions anytime.

Happy Thanksgiving !