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.
Three words we believe will be a theme throughout this new year are consumers, change, and confidence. Here are some market trends that you might not have heard of that will affect this theme.
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 is a busy time of the year in the economy and with all the political rhetoric. Now that the noise of the election and the Fed raising rates is behind us, we can focus on what is and will continue driving the markets.
There was a lot of information that came out over the weekend that could affect the market momentum. The big news this week concerns the Fed who is expected to raise rates on Wednesday. How will this affect you? Watch the video.
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.