With consumer confidence at a 17-year high, we are approaching 2018 with plenty of momentum. But will the rally continue into 2018? Could confidence peak in the next year? I discussed these thoughts and more during an appearance on CNBC's Power Lunch with host Tyler Mathisen.

Today's post is from Peter Essele, manager of Commonwealth's Investment Management and Research team. 

A little over a year ago, my colleague, Anu Gaggar, and I conducted a study for the Independent Market Observer. We examined the emerging markets and international asset classes through the lens of investor behaviors, noting at the time that many investors had shed these asset classes during 2016. They did so largely because they feared underperformance and higher volatility. We believed there could be negative consequences on portfolio returns from this decision, however, so we took a closer look.

Today, we're revisiting this topic to see whether investors have changed their minds since then, choosing to once again accept the risks of global diversification. And, if so, what might that mean for their portfolios going forward?

Last week was very positive for the housing sector, with both consumers and builders showing surprisingly high levels of confidence and activity. But the week ended with a cautionary note for business investment. As that has been a particularly strong story recently, it warrants attention. Overall, however, the news was good as we end the year.

One of the questions we often get is whether people should invest in hedge funds. This question is more complicated than it seems. Today, Rob Kane will take a look at whether you can—or should—consider such investments. Commonwealth’s Research team provides this kind of expertise to advisors and clients, and I am happy to offer a sample of what we can do for an asset class that is so much in the news. Over to you, Rob.

Brad here. One of the great things about Commonwealth is that we have a team of expert analysts to provide valuable context on pretty much anything we need. Today’s post, from Nathan Parker, highlights the evolving energy landscape in the U.S. We must understand where we came from to know where we are going, and this is a great read that does just that for the energy sector. Over to you, Nathan.

It was the best of times, it was the worst of times. Catchy beginning, yes? Dickens certainly used it to good effect. As I was thinking about 2017 in retrospect, it seemed almost unavoidably appropriate.

Last week had only three major reports, but they covered the spectrum of economic activity. Overall, the news was quite good—with faster income and spending growth, as well as continued industrial and manufacturing expansion.

From an economic standpoint, many of the changes made so far by the Trump administration have been regulatory, not legislative. For all the media coverage on the health care battles, and now the tax reform battle, the real work has been down in the trenches, looking at regulations that constrain different industries and trying to repeal those deemed most onerous.

The latest change—which has received an unusually high profile—is the decision by the Federal Communications Commission (FCC) to repeal what are called the net neutrality rules.

On the economic front, the headline news is that the Fed raised rates another quarter point, as expected. So far, so what? But the details paint a more interesting and useful picture about what the Fed is likely to do with interest rates next year—and what that means for you as an investor.

Yesterday’s news that the Democrats won the Alabama special Senate election, for the first time in 25 years, rattled U.S. politics. By taking the Republican majority in the Senate from 52 to 51, it reduces an already tight margin for difficult votes. By signaling that even the reddest states are now potentially in play for the Democrats, it could be a bellwether for the 2018 midterms. But what does the Alabama election mean for the markets?