Happy Tax Reform Day! | December 22, 2017

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?

Economic Data

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.



If you would like to receive this weekly article and other timely information follow us, here.

Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.

Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.