Liz Miller, president of Summit Place Financial Advisors

Focus: U.S. equities
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MARKET OUTLOOK
The markets started 2017 energized by "wild spirits," "pixie dust" or the "Trump trade," depending on whose narrative you most appreciate. Recently, it has looked like we might be getting a new narrative; the new administration is ineffective and the failure of health-care reform means all other fiscal priorities are in turmoil. Thankfully, investors are ultimately able to look through headline pronouncements, and the equity markets will likely hold tight to the economic trends that always break through market uncertainty. 

Going forward I believe the equity markets can continue to move higher, but more volatility is likely as investors digest the pace and likely success of various fiscal initiatives. We look forward to using any dips for future buying opportunities, but remain cautious regarding the fixed-income market. Even in a rising-rate environment, however, fixed-income investments can provide important benefits including diversification from stocks, predictable income and capital protection. 

Current times may feel more fraught than recent history as our new leaders continue to find their firm footing. At such times, we remain focused on our discipline; history continually shows us that over time, markets always find their beacon in economic trends. 

TOP PICKS

REGIONS FINANCIAL (RF.N)
Regions is the dominant deposit taker in its home state of Alabama. Regions has made solid progress in cleaning up its loan book and bringing down credit costs. Nicely expanding net interest margins and well-controlled expenses. With rising interest rates, RF is positioned to strengthen further and has more upside than many regional peers.

MCKESSON (MCK.N)
One of the major pharmaceutical distributors. McKesson is the second-largest specialty distributor in the U.S. and specialty drug spending continues to increase. We believe McKesson’s stock is deeply undervalued, and combining this dynamic with strong long-term trends makes it one of our best ideas.

VENTAS (VTR.N)
The firm continues to reposition and benefit from a diversified portfolio of senior housing, medical office buildings, and other health-care properties. VTR enjoys industry tailwinds, including an aging population and regulatory changes that expand the pool of participants for their services and facilities.
 

PAST PICKS: NOVEMBER 9 2016

LINCOLN NATIONAL (LNC.N)

• Then: $57.51
• Now: $66.71
• Return: 15.99%
• TR: 17.01%

STARBUCKS (SBUX.O)

• Then: $54.58
• Now: $61.01
• Return: 11.78%
• TR: 12.80%

WALT DISNEY (DIS.N)

• Then: $94.64
• Now: $114.61
• Return: 21.10%
• TR: 22.01%

TOTAL RETURN AVERAGE: 17.27%