Equity markets entered 2018 wide-eyed and ready to run. Fresh off an economic espresso - the Tax Cuts and Jobs Act - money poured into equity markets. The S&P 500 appreciated 5.6% during January, and the Dow Jones Industrial Average approached 27,000.
The equity market rally was short lived, and price volatility returned to the market in February for the first time in nearly two years.
Despite recent volatility in equity markets, we see room for further appreciation. The U.S. economy and the world economy continue to provide corporations and financial markets a firm foundation. We continue to see short-term volatility as an opportunity to acquire high quality investments at suppressed prices...
This quarter's Perspectives considers all angles regarding the new tax reform including charitable gifts, federal estate and gift taxes, and retirement planning. The article also shares a warning for seniors and their living trusts.
During the fourth quarter, U.S. Real Gross Domestic Product (GDP) growth remained wholesome. Internationally, monetary policy remains extremely easy and global economic growth has been trending in the positive direction.
The New Year will likely bring optimism.
The recently passed Tax Cuts and Job Acts is going to provide corporations with a major earnings tailwind throughout 2018. The expected short-term boost to domestic GDP growth will likely fuel higher levels of consumer confidence and additional equity market appreciation...