We are hearing much from President elect Donald Trump concerning infrastructure. We could see a 0.5% uptick in the GDP which would be attributed to what many people are calling the “Trump Bump.” There are two ways the Trump Bump could impact the economy through infrastructure projects.
You may have noticed the $0.52 increase in gas prices as you were doing your last minute Christmas shopping this past week. Statistically, a $0.52 jump in gas prices is equivalent to a $60 billion dollar tax increase. That has an immediate impact on the consumer’s bottom line.
This week we are seeing corporate earnings and corporate profits rebounding for the first time in the last five quarters. We need to see this momentum keep going as profits and earnings make stocks grow.
the week ahead is full of a great deal of portfolio impact data. One could say that it is boring… but important. We are looking for a confirmation that our economy is still moving along.
Surprisingly, there is much that investors can be thankful for this year. The election is behind us and with that all of the uncertainty that came with it. Last week we saw housing numbers jump up 25% and jobless claims go to the lowest they have been since 1973. Retail sales had their best two months in the past two years. This and other economic data gives us a positive outlook for the rest of the fourth quarter and the beginning of the new year.
Today it seems that the markets have priced in Hillary Clinton winning the election and the republicans retaining control of the House and Senate. What will bring about market volatility is any uncertainty about the results of the election.