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The Economic Expansion is Broadening. Here’s What it Means for a Diversified Portfolios…

September 25, 2017

The present economic expansion is approaching its 100th month, making it one of the longest on record.

One concern over this time has been the difficulty finding areas of strong growth outside of large U.S. company profits. Indeed, much attention has been given to the apparent disconnect between mediocre economic growth on one hand, and strong earnings and stock market performance on the other.

This has now changed. Economic growth has broadened significantly to include overseas economies and more parts of the U.S., including small businesses.

All 46 countries monitored by the OECD are on track to grow this year, the first time this has happened since 2007. Likewise, manufacturing is expanding in 97% of more than 40 countries tracked by JP Morgan, up from 69% one year ago. In the U.S., small businesses are showing more plans to hire and expand than they have in over a decade (chart).

Broader economic growth has led to many types of investments performing well in 2017, leading to solid gains for diversified portfolios. This comes after several years of strong returns being limited mostly to large U.S. stocks and under-performance by diversifying asset classes.

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Hefren-Tillotson Inc., is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN for individuals and businesses. The firms wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFSs. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills.

Disclosure:Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.