January 2018

Increased global economic activity combined with historically low interest rates could lead to a surprising level of business growth and record earnings growth.

Uncertainty over the contents of proposed tax legislation and if/when it might become law delayed business decisions. The new tax law passed in late December permanently lowered US corporate taxes by a record amount. Lower taxes and no more tax-bill uncertainty should increase US business activity.

The much lower corporate tax rate makes US companies more competitive abroad. It also raises their valuations as after-tax earnings immediately surge for many US companies.

As business leaders learn the new rules, they can move forward with acquisitions and large capital spending and research projects. In an era where the head of General Electric is shown the door, CEOs are under pressure to perform