Page 74 - South Mississippi Living - January, 2017

PHYSICAL & FISCAL FITNESS investing tips
FINANCIAL EXPECTATIONS HIGH FOR 2017
story by Susan Ruddiman photo courtesy of Jeremy Nelson
Few will forget the roller coaster ride of the presidential race this fall where two opposing candidates were as different as the two parties they represented. With the election of Donald Trump, the Republican Party will now rule the White House, and those in the financial community see economic growth ahead.
“Expectations are very high for 2017,” said Jeremy Nelson, chief investment officer with Community Bank’s wealth management section. He is the president at Pinnacle Trust of Madison, and commutes to the Coast for Community Bank several times a month.
Among the high expectations for 2017 is a predicted 20 percent earnings growth. However, Nelson said his firm feels that is overly optimistic. “The more fiscal stimulus we get, the faster the Federal Reserve Board will have to raise interest rates which will have a slightly negative impact on stocks,” he said. “For the year, we expect to have mid-to- high single digit returns for domestic stocks, but there will be a couple of surprises along the way.”
The actions taken by the Federal Reserve Board throughout the year will ultimately dictate the returns on stocks, he said. The doubled edge sword, as Nelson described it, is the faster the economy grows, the more inflation there is. Then the Federal Reserve Board has to raise interest rates to offset the inflation.
With that in mind, the average investor needs to stay
This is how a person can do that, according to bankrate.com:
• Resolve to learn something and read.
• Know your tolerance for risky business, but there is risk
in earning good returns.
• Know that interest rates probably will rise. • What are you losing to fees?
• Sometimes cash is good for conservatives. • Master your emotions.
• Stop and review your investment mix.
“We are definitely more optimistic over the intermediate to long term. We like the idea of taking the shackles off the economy,” Nelson said. “This is good, but historically speaking when you transition from one regime to another, there tends to be a few surprises along the way.”
informed and focused.
Jeremy Nelson,
Chief Investment Officer
Community Bank
228.396.8338 | www.communitybank.net
74 SOUTH MISSISSIPPI Living • January 2017
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