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At more than one thousand pages, the new tax reform package has plenty of both carrots and sticks for U.S. taxpayers. Both the short- and long-term effects of the new legislation on economic growth in the U.S. are uncertain at this point, but changes in the tax code will undoubtedly confer both benefits and penalties on certain segments of the U.S. economy. Until the tax accountants ferret out every new wrinkle, let’s examine the most likely impacts that the new law will have on the investment landscape in the coming years.

The broadest index of global stock market performance (MSCI ACWI) has gone more than 400 days without a pullback of 5% or more, the longest such streak in 30 years. It is no surprise, then, that experienced investors are riding the rally with one foot on the gas and a hand on the parking brake. The only thing that can be said with certainty is this streak will end, but the question is when. The key to surviving the next downturn is proper mental preparation.

An IRS advisory published in late December could prevent individuals from deducting property tax prepayments in 2017. According to the advisory, taxpayers can deduct a property tax prepayment in 2017 depending on whether the tax was both assessed and paid before January 1, 2018. Prepayments of anticipated real property taxes that have not been assessed before January 1, 2018 are not deductible in 2017. Whether a tax has been assessed is a question of state or local law, and states vary widely in when and how they assess property tax.

Moving into 2018 there is a need to prepare for a subtly changing investment environment. It is time for a comprehensive reality check, and the Ten Themes for 2018 can help you understand the opportunities and risks ahead. We think that we will see another year of positive, if generally rather lower, investment returns. Beginning with theme number 1—forewarned is forearmed—we believe that you should be prepared, at the very least, for higher levels of volatility.

Now that The Tax Cuts and Jobs Act (the Act) has been signed into law, you may be wondering what this means for you and your family. The Act is broad in scope and will change the tax rules for individuals and businesses in 2018 and beyond. When thinking about the impact of the Act on you, your family, and your business, it’s important to remember that every individual has their own set of circumstances, and is uniquely affected by tax reform.

Investors focus on the yield curve with good reason—an inverted curve has historically led to recession and eventual stock market losses. However, these stock market declines take time to materialize, suggesting that an inverted yield curve is less a “predictor” of stock market declines than a challenge to economic functioning. The Fed is cognizant of this history and, absent an upsurge in inflation that forces its hand, will seek to avoid significant yield curve flattening.

Low inflation, subdued global growth, and historically elevated stock valuations are the realities we believe your investment portfolios face over the next five years. Investors can position their portfolios for the long-term with these six key themes in mind: valuation superstructure, entrenched growth, stuckflation, monetary godot, populist catharsis, and regulation in limelight.

Depending on where you live, your philosophy on fiscal policy and what your sources of income are, the Tax Cuts and Jobs Act could be viewed as a gift or a lump of coal.

Private foundations assessing the impact of the tax reform legislation (HR1) signed into law on December 22, 2017 should look beyond the private foundation-specific proposals that were not included and assess the impact of provisions affecting all tax-exempt organizations. For some private foundations, the list of key items may include the new excise tax on organizations with highly compensated employees, segmentation of unrelated business taxable income (UBTI), and changes to employer provisions for qualified transportation fringe benefits.

Congress on December 20, 2017 gave final approval to the House and Senate conference committee agreement on tax reform legislation (HR 1 or the Act).