Data and fiscal stimulus, in the way of tax reform, were slipped under the tree right before the Holidays, but we did not see the growth you would expect, why?
Housing data was in focus as existing home sales, housing starts, and home prices surged in November. Much of the home value growth occurred on the back of short inventories. Housing weakness in 2017 has been mainly attributable to light inventories according to MFS.
The Legislative branch passed tax reform in time for it to make it to President Trump’s desk on Friday. The passage marks a major win for corporate America. 2018 profit margins should expand as the corporate tax rate will fall from 35% to 21%.
Markets gained minimally over the week. There was plenty of cause for a rising market environment, but light volumes due to the holidays kept investors tame.
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