International Trade, NAFTA, NFIB, and Earnings
There is much going on in our economy in this new year. We are focused on International Trade, NAFTA, NFIB, and earnings.
The forgotten earnings season
The fourth quarter of 2016 has become the forgotten earnings season. Companies making money is still very important to the markets. While everyone is looking at the inauguration, we are watching how companies did last year and how CEOs are talking about their organization and the confidence they have going into the new year.
Small business optimism
We have learned from the National Federation of Independent Business that small business optimism is at multi-year high. Before the election, only 10% of small businesses were positive on the economy. After the election, that number rose to 50%. This is important because small businesses really drive the economy.
One thing that we will most likely see in the new Trump administration is an attack on international trade. There are three areas concerning international trade that we will probably see addressed once the President-elect is in office. They are:
• Negotiation on NAFTA will be reopened
• The Chinese currency situation
US and international markets will be a big theme this year. We will see this through what comes out of Washington, DC and across the country in attitude and earnings.
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.