In 2015, commodity stocks, such as oil, underperformed whereas popular large growth stocks overperformed. Some of the largest stocks were AMZN, GOOG, NKE, FB, and HD. However, as you know, trends tend to change. Read more by clicking on this presentation by David Milberg.

1. Investment Trends to Look Out for in 2016
In 2015, commodity stocks, such as oil, underperformed whereas popular large growth stocks
overperformed. Some of the largest stocks were AMZN, GOOG, NKE, FB, and HD. However,
as you know, trends tend to change. Investors are placing their money in stocks of smaller
companies and value companies in anticipation of a return next year. Here is a list of five
investment trends to look out for in 2016:
The U.S. Dollar

2. Yes, the U.S. dollar is expected to perform well next year. The Euro will likely depreciate
against the U.S. dollar in 2016 when the Federal Reserve raises interest rates. It has been 10
years since the Federal Reserve increased interest rates. Currencies with high interest rates
deliver a greater return when you borrow in a lower yielding currency to buy a higher yielding
currency. Additional reasons the U.S. dollar is increasing in value are decreasing commodity
prices and economic problems in emerging markets.
Financials
The financial sector will also benefit from the Federal Reserve raising interest rates in 2016. It is
predicted Financials (XLF) will experience higher lending activity, interest income, and advisory
fees. Financials will prosper from share buybacks, corporate spending, and demand for mergers
and acquisitions.
European Equities
According to Credit Suisse’s strategists, Europe will see 10% earnings per share growth next
year in comparison to 6% EPS growth in the U.S. It is predicted that the rise in European
corporate earnings will lead to European equities outperforming U.S. equities. Barclays Research
agrees with this forecast because Europe’s estimated earnings growth rate is larger than the U.S.,
Japan, and the U.K. Because of weak economic growth in Europe, low emerging marketing
demand for European goods, political conflict, and the lack of new economic stimulus from the
ECB, it’s possible European stocks will fall. The gradual strengthening of Europe’s domestic
economy makes up for this weakness.
Technology
Based on its mergers and acquisition activity and potential earnings growth, the technology
sector is still valuable. Technology’s strengths are flexibility with balance sheets, attractive
growth profiles, operational leverage, and low financial leverage. In 2016, investors expect
Technology to profit from higher capital expenditures that result from companies aiming to boost
productivity.
Healthcare
During 2016, the Health Care Select Sector performed better than the stock market for the
majority of the year. Although it suffered from political conflict and Valeant’s accounting
scandal, some investors are expecting the Health Care Select Sector to perform well again next
year. It will be a wise investment choice because of a good dividend yield, high cash balances,
strong top-line growth, high barriers to entry, and earnings stability.
Investment trends that are likely to occur in 2016 are the U.S. dollar (UUP), Financials (XLF),
European equities (HEDJ), Technology (XLK), and Healthcare (XLV). Investors will be
considering these five areas during the end of 2015 and also throughout 2016. An important
event for 2016 is the rise of interest rates by the Federal Reserve. Definitely pay attention to this

3. and its effects. The U.S. dollar will most likely benefit from it as well as a few other investment
options.
David Milberg is a financial expert and an investor from NYC.