Tax reform has created meaningful economic effects and significant investment opportunities. We discuss those opportunities, the impact of rising interest rates, and our investment themes for 2018 in this quarter’s report.
In this report we discuss Congress’ progress on the reform agenda, market valuation, and several of our investment themes for the second half of 2017.
Since the November election, the media, investors and the public have been focused on the reform agenda in Washington. We believe the economy has a real opportunity to accelerate once Congress makes meaningful progress
The 115th Congress is seated and the new Administration will take office in several days. We believe fiscal policy changes will provide significant investment opportunities, but selectivity will be necessary as there will be winners and losers.
To say the stock market is disliked is an understatement. Investors have withdrawn money from actively managed mutual funds for over 18 months. Yet the picture is relatively positive
For the U.S stock market, we believe the volatility driven by Brexit will be short-lived. We suspect that in a year or two we will look back and wonder what the fuss was all about. We are even more confident in five years that will indeed be the case.
The stock market started off the year exceptionally weak, with all major market indexes down double digit percentages going into the low on February 11. We believe much of the weakness was due to selling by foreign sovereign wealth funds, where the related country’s fiscal budget is heavily affected by the price of crude oil.