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As we head into 2017, markets are still rallying on the back of Donald Trump's unlikely ascendance to the White House.
But, as with most rallies, the rising tide is not going to lift all boats; some will remain in choppy seas for the foreseeable future, while others will sink to the bottom.
While markets seem to favor a Trump presidency, there's still plenty of uncertainty that's giving investors pause.
Today, I'll show you what I see coming over the horizon as we approach 2017. I'll show you which sectors are going to continue to benefit in the Donald Trump era, and which will be lost at sea.
Before I tell you which sectors are going to be good to your money, I want to make sure you know where not to invest.
So let's get started by talking about what investments you should steer clear of in 2017… unless you want to make a couple of speculative bets that could make you a bundle.
Avoid These Investments at All Costs
While the full-year numbers have yet to be tallied, economists expect China's economy to have grown by 6.7% in 2016, down from 6.9% in 2015.
I expect 2017 to be even worse, with the growth rate falling to at most 6.5%.
If that number sounds familiar, it's because it is the lowest that President Xi Jinping has said the ruling party will tolerate, as it must stay at or above 6.5% in order to achieve the country's stated goal of doubling GDP and per capita income from 2010-2020.
The Chinese yuan is already suffering thanks to the election of Donald Trump. And the specter of the Federal Reserve continuing to raise interest rates is pushing safety buyers into the dollar.
This has led to massive capital outflows from China and intervention from the country's central bank.
China's current housing boom is actually a bubble that's ready to pop at any moment. And the government can't spend its way back to double-digit growth numbers (for lots of reasons – chiefly, there's a long list of interventionist policies from 2015 that haven't seen the light of day as of yet, and probably won't thanks to turnover in local party leadership positions in the coming year).
This will continue in 2017. Stay out of China (unless you want to go short – more on that below) at all costs.
Additionally, there's a good chance President-elect Trump will kill TPP. Some analysts worry that will turn Asia towards China and away from the U.S.
But that argument doesn't fly.
The emerging markets economies in Asia and hard-charging Asian economies that aren't technically emerging (because they're already players on the world stage) would gladly fall in with China on trade deals, but that's not going to help them if China falters further.
In fact, they are already so dependent on China, they're increasingly looking to the U.S. for trade deals. They'll negotiate them separately with t…
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.