Well, here we are. 2017.For 2016, The Dow Jones Industrial Average (DIA) closed at 19,762.60, up 15.24% for the year. The S&P 500 (SPY) closed at 2238.83, up 11.24% , ending at 2238.83, and the Nasdaq (QQQ) closed at 4468.17, up 9.79%. The high notes that we are ending on were marked by particularly turbulent year in the news, with equality for the country in sharp focus, and a new president, Donald Trump being elected into office against issues the public felt were more important. Americans have spoken: They're tired of seeing their jobs moved out of the country, and they want to make America great again. These attitudes also caught the attention of the debt markets in 2016:The actions by the federal reserve to keep interest rates low have worked up to this point. We were able to keep inflation under control, and reduced the debt burdens for millions of Americans and businesses. While rates on long-dated debt are still very low historically, short term rates have begun to come up, and that will place pressure on the longer-term rates as a consequence. However, it looks like our new president intends to take America back to our old habits of leveraging. Donald Trump says he wants to keep taxes low, but at the same time take away the advantages associated with global trade. It's a poison pill that America needs to swallow: We can't make financing free forever. The Fed can manage the interest rates associated with borrowed money, but we can't force Americans to spend it. So far, we haven't heard news of any large spending bills related to building roads, bridges, or for that matter, walls.Donald Trump is rustling snakes with his bold words for the countries we have unpleasant ties with, but I'm sure that war isn't the first choice on anyone's mind, and he'd rather do what he can to strengthen business ties. Japan appears to be onboard, with the recent news that Softbank (SFTBY) wants to invest $50 billion here. It's not clear yet if that means growth in infrastructure, or increased competition. If our own government refuses to spend here, and places the burden of improvements on the individual states, it could lead to a rise in prices through stagflation if they are forced to use American-made materials and machinery. That remains to be seen though, and I'm sure the president has economic advisers who will also point that out to him.My advice for 2017: Stay diversified, be prepared for disappointments.Increasing rates are bad for your bond portfolio, but you should still have some. Gradually increase your allocation as rates come up. I'm at 20% right now. If stocks continue to run, but interest rates keep rising, sooner or later that party will end badly. I'm still using the Vanguard Total Bond Market Index ETF (BND) for this purpose.Be wary of the technology sector:Tax laws could finally get reformed this year. That could lead to serious problems for companies like Amazon (AMZN). I actually think that's a great idea, because Amazon's success is eroding much of our local retail businesses, and those businesses are at the heart of American growth. A recession will likely result if they continue to grow unchecked. I remain bearish on the future outlook for that company as a result. Stick with companies will low P/E ratios, with manageable debts, and who have lots of cash on hand. Apple (AAPL) is in position to benefit from the startups who came to market over the last few years without a solid long-term plan. Tesla (TSLA) by comparison could be on its last legs soon.I'll have an update soon with some of the unsung values for 2017.Until that time, become a follower, and remember that Brand Power is at the heart of durable competitive advantages. Will see you soon.