4. Stocks will hit their 2017 highs in the first half of the year as earnings rise but price/earnings multiples fall.
5. Stocks will outperform bonds for the sixth year in a row for the first time in 20 years while volatility rises.
6. Small caps, cyclical sectors and value styles will beat large caps, defensive and growth areas.
7. The financials, health care and information technology sectors will outperform energy, utilities and materials.
8. Active managers’ performance will improve as flows into equities rise.
9. Nationalist and protectionist trends will rise as pro-domestic policies are pursued globally.
10. Initial optimism about the Trump agenda will fade in light of a slow legislative progress.