Retire First Newsletter
January 2018 – Download Full PDF
Trump Adds The Octane by Doug Allan
Fiscal stimulus by way of tax cuts have historically been rare events. The tax cuts the US Republicans were able to get passed in December 2017 were of such magnitude, it would be fair to say this is a once in a generation opportunity. Reducing corporate taxes from 35% to 21% will allow the US market to move ahead by over 25% just on higher net after tax income alone in 2018. That doesn’t include any other benefit from having more disposable income that also will stimulate growth. Rising long term interest rates can take some of the upside away. However, even if the net benefit is only 15%; it’s still an amazing tailwind, which we rarely ever have the chance to enjoy.