Today’s risks are clear: stock valuations are high, credit spreads are tight and interest rates remain low. A modest tilt toward return-seeking assets still makes sense. But investors should also be willing to look beyond traditional stocks and bonds.
Capital spending, which slowed sharply this year, may be poised for a rebound in 2017. That could be good news for certain cyclical sectors—provided governments make good on their plans to boost fiscal stimulus.
