Stock Market
Stock Market
markets 2018 outlook
Weighing the Odds for the Markets in 2018
markets 2018 outlookAssessing the future is all about weighing up the odds. We can never be sure of how the future will unfold. So I talk in probabilities, never in certainties. With interest rates rising in the US, and with the post-2009 economic expansion being one of the longest on record, there is an increasing probability that the business cycle will soon start to turn down.
Watch this Crucial Market Reaction
market reaction to the US tax cutsThe difference between US and Aussie companies and investors can be broken down as simple as this. The US is more strategic, whereas the Aussie market has a much greater focus on value. I do think US stocks are stretched and vulnerable to a short term correction. And as I said yesterday, that correction could come about as soon as the US tax cut rumour becomes fact.
When the Rumour of US Tax Cuts Becomes Fact
US tax cutsThe promise of tax cuts and its impact on company earnings continues to drive US stocks relentlessly higher. While that’s well known, the question to ask is whether the tax cuts are already priced in. Are investors now being too optimistic about the impact of lower tax rates on company earnings?