We have had clients ask recently: What will keep this market going? The first thing we believe could help this is continuing to have strong corporate earnings. The second thing is consumer confidence. Last week, consumer confidence hit a 13 year high. Consumers are excited about their own well-being, as well as the overall economy. That’s important because consumer spending makes up 70% of the economy. This gives the US a nice boost heading into the holiday season.
There has been an impact on the economy recently stemming from unpredictable weather patterns. Last week, the House passed a large series having to do with Puerto Rico, Virgin Islands, hurricanes and fires. This could result in about a 40 billion dollar stimulus. If you look at the end of this year and moving into next year that is a huge amount of stimulus coming into the economy.
This is a huge week for the process of getting tax reform pushed through. The first thing they have to do is pass a 1.5 trillion dollar budget resolution which takes 50 votes from the Senate. This will be voted on this week. If passed, it then goes back to Congress which ultimately debates how to fill that resolution in with tax cuts. An interesting note is Senator Susan Collins, who was a “no” on health care and assumed to be a “no” on tax reform, came out to very likely be a “yes.” Changes like this could really affect the 50 votes on this matter.
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.
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