Markets have been reaching all-time highs while volatility reaches all-time lows.  Finding growth opportunities in the current market environment can be challenging.  Here are three areas of opportunity in the current environment.

• International Equities:  Weakness in the € and ¥ last year have translated into more competitive international companies.  Earnings are beginning to reflect such and should continue to strengthen.
• Financial Sector:  As interest rates have begun increasing, financials present a better earning opportunity than they have in recent history.  In addition, should Dodd-Frank reform pass, profitability in financials should increase due to decreased compliance costs.
• Floating Rate Bonds:  As interest rates have begun to increase, bond investors look for places to invest that provide downside protection against rising rates.  This provides that opportunity, but is contingent upon a rising rate environment.

These three opportunities have their limitations, risks, and draw backs.  Speaking to your adviser to see how they fit into your portfolio is important and these should not be taken as recommendations.

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Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services.  Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.

Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.