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3 key investing themes to know for 2018

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Stocksnapper / Shutterstock

The Federal Reserve's (Fed's) rate increase this week was widely expected, and focus is now on what's next for 2018. We see the central bank delivering its projected three 0.25% rate increases in 2018-and pressing ahead with shrinking its balance sheet. A fourth rate hike could come if the Fed expects tax cuts to raise inflationary pressures. The Fed is likely to put some distance between itself and other major central banks with these further rate increases in 2018. This monetary policy divergence comes as U.S. inflation appears poised to re-awaken, whereas price pressures elsewhere are minimal. This modest inflation comeback is just one of the three key investing themes we see shaping economies and markets in 2018, as we write in our new 2018 Global Investment Outlook .

Theme 1: Room to run

room to run G7 Filling up
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Theme 2: Inflation comeback

BlackRock Inflation GPS Each at its own pace
56120_5a_GPS_inflation_v1_BLOG

Theme 3: Reduced reward for risk

Shrinking rewards
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latest outlook Richard Turnill is BlackRock's global chief investment strategist. He is a regular contributor to The Blog .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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