Trumps new tax laws and guidelines and what they mean for you – December 24, 2017
Guest: Steve Forbes
Let’s face it no economist or market analyst has a crystal ball, however, forecasting the year ahead is a key part of the job for any economist or advisor. Whose first priority is to help his or her clients protect their money, last week I shared some of the details I’ll be examining as I put together my market forecast for two thousand and eighteen. And once again, those include the Federal Reserve and its ongoing efforts to raise short-term interest rates without flattening the yield curve. Donald Trump’s tax plan of course, which we’re taking a close look at on today’s show, President Trump’s entire presidency and whether or not his economic goals could be sabotaged by other policies and actions. And of course, let’s not forget the global picture just like here at home it’s a messy mix of economic promise and socio-political turmoil. Now, in addition to all that we’ll be focusing on what you need to know to keep an eye on regarding the bond market. As I pointed out many times one indicator that Wall Street’s optimism has been guarded since President Trump’s election is indeed the bond market. It’s often said that the bond market is smarter than the stock market at least its investors and participants or as so they say. But the bond market has not dropped proportionally with the stock market’s rise, this would normally be the case with the stock market supported by fundamentals rather than hope and hype. The ten year Treasury bond, for example, its rate hasn’t surpassed two point five percent since March. This is not only the crux of the Federal Reserve’s yield curve dilemma but it’s also a telling sign about the true strength of the sky-high stock market. I’ll also talk more about a topic that I touched upon today and that is the significance of income when it comes to total return. Even if the stock market continues to cling to its lofty heights in the coming year, the question becomes what does that mean in terms of actual average return for investors with substantial market risk? Compared to those that are more conservative focusing on income instead of growth. So joining me to talk about all this next week and much more will be economist, Peter Morici. He’ll be in, piped in from our Washington D.C. studio. He’s a contributor and a frequent guest to many if not all of the networks including, yes right here at Newsmax. Peter will share in my forecast next week and he might even surprise us just a bit about his own forecasts concerning the economy and also the world inside the beltway. So, what can you do about it? Simple, if you’re close to retirement and you really, really want to know how to protect and maximize your money it’s absolutely essential that you stay informed and up to date.
**Disclaimer: Sound Income Strategies, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance is not an indication of future results. Be sure to first consult with a qualified financial advisor or tax professional about your specific financial situation before implementing any strategy discussed herein.