The trucking industry looks at the number of trucks available versus what is being shipped. They then track this data to determine the amount of imbalance between the two. The economy is doing so well right now that for every twelve shipments there is only one truck handling the shipment. This 12:1 ratio is opposed by last years’ 4:1 ratio. This is the largest imbalance since Hurricane Katrina. People are starting to weigh the options of whether they are going to pay higher rates per mile on shipments or wait on things like non-essential items.
Construction spending is at an all-time high. Now that Congress is taking care of tax reform we are looking for the infrastructure building. If Congress can pass that then construction and infrastructure could offer a very good opportunity for investments. Infrastructure could also lead way to creating more jobs. Nearly a million employees are expected to get a one-time bonus because of the tax bill. Starting in February, the IRS will adjust paychecks to reflect new taxes. This will allow more of a cushion and could lead the way to more individual savings.
When companies had cash overseas and brought it back they had to pay the top market tax rate at 35%. This has been reduced to a one-time tax around 15%, but when companies bring the money back they still have to pay taxes on it. They are pulling forward deferred taxes and a lot of companies will announce this as a loss. This will allow companies to have more money to use on things like bonuses, reinvesting in their company, hiring, innovation and much more.
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
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Economic forecasts set forth in this presentation may not develop as predicted.
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