A Note on Longer-Term Risks

One of the primary long-term market risks is the ballooning national debt, which will eventually become a drag on domestic GDP growth unless it is brought into check. In Europe, populist forces across the continent are showing no signs of waning. Additionally, the chance of a growth-stalling global conflict, either physical or economic, appears to be on the rise. Thus, while we continue to espouse the benefits of a well-diversified portfolio, we note that we may recommend reducing portfolio risk in late 2017 or early 2018.