#208: The Economic Freedom Index Of The United States

FACT:

Since 1945, there have been twenty-seven years where the markets have gone up in January and February. In all twenty-seven years, the market ended up for that year. There are no guarantees that this will happen this year, but it’s an interesting fact nonetheless.

The markets are watching Washington DC

A big week in Washington DC starts today with President Trump delivering the budget to government departments. This will give government entities a road map for what the White House is expecting to happen over the next four years. We are expecting an increase in the defense budget and a decrease in agencies like the EPA. President Trump will also be speaking to Congress on Tuesday, which will be watched very closely not just by a lot of people, but also by the markets. Hopefully, we will get more clarity about policies going forward as the markets do not like uncertainty.

The world is gaining more economic freedom

Since 1995 the Heritage Foundation has published the Index of Economic Freedom. This index rates how involved your government is in your life as a citizen or your business. For example, if your country has a lower tax rate, you have more economic freedom. A higher tax rate means you have less economic freedom. Out of 100 countries reporting the vast majority ranked as having more economic freedom. Forty-nine of those countries reached the highest score they’ve ever had.

The economic freedom of the United States

Most of the nations in the transpacific area, like Korea and Japan, showed an improvement. China and Russia did as well even though they are far below on the list. One country that showed less economic freedom was the United States. It’s important to know that this Economic Freedom Index is almost directly correlated to how much a country grows. If the US can reverse that with less regulations and less government spending, we will begin to catch back up. The rest of the world has been moving in one direction, while we have been moving in another.

Positive things are happening

Still, we are seeing some positive things happening both domestically and globally and we are hoping the markets will take notice. Please continue to send us your comments and questions.

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Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here 

Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here

Trey Booth, CFA®, AIF®
Vice President
Senior Vice President
Email Trey Booth here

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.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.

Stock investing involves risk including potential loss of principal.

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.