2018 Stock Market Forecast | Inflation discussed the direction of the major stock market average and stock and bond indexes in 2018. We also revisit our calls on the stock market for 2017 to review how accurate we were.

Inflation broke out to multi-year highs in 2017 and we expect rising interest rates and rising inflation in 2018. If GDP growth fails to rise interest rates will drop and “Stagflation” will take hold of the economy. It is in a stagflationary environment

Some of our favorite stocks and sectors going into 2018 are in the gold, energy, financial and real estate sectors. All three of these sectors perform well with a weak US Dollar, rising interest rates, and rising inflation.