President Trump has the opportunity to shift America from the Keynesian economic model, where government is portrayed as the solution by controlling the money supply and interest rates, to a supply side consumer driven model promoting small business and job creation. We anticipate solid growth numbers in jobs, added tax revenue from the tax cuts, repatriation of corporate offshore funds, along with rising middle class income.
With control of the House and Senate, less burdensome excessive regulation and lower corporate tax rates should spur economic growth.
Our opinion is that in 2018 the markets should settle into a range of 12-17% S&P 500 returns. The workhorse economy will take a breather as interest rates top out in 2019-20. Call for further discussion.