Consumers, change, and confidence
Consumer confidence and minimum wage
Minimum wage in 20 states and the District of Columbia will go up in 2017. This is important as there will be a large group of workers getting paid more which should add to consumer confidence in the economy. On the other hand, this adds to company costs. We will be watching to see if there will be an increase in consumer spending or will we will be seeing companies not hiring as much. Technology and artificial intelligence will play a big roll in how this plays out.
Corporate confidence with IPOs
Corporate confidence is looking great for 2017. In the first quarter alone we will have more IPOs than in the entire year of 2016. These IPOs are companies coming to the market because CEOs and CFOs are feeling very optimistic about where the market is and where it is going. This is a very good sign of corporate confidence.
Other 2017 themes
This month we will have the inauguration and many new members of Congress taking office. We are watching to see if Congress will beat back Donald Trump’s policies or go along with him. The hot topics will be healthcare, corporate tax rates, immigration, trade agreements, and regulations. There are a lot of unknown answers right now. We believe the market does not like uncertainty. These issues will play in to the confidence throughout the economy. We could see consumers grow in the confidence that positive changes will occur and begin spending as if it already has. We are watching all of these things closely.
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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.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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