2018 Market Outlook Provided by Aadil Zaman & Syed Nishat of Wall Street Alliance Group

NEW YORK, Jan. 15, 2018 /PRNewswire/ -- It is vital that an investor's portfolio be in alignment with his or her long-term objectives. However, it is equally important for an investor to understand relevant trends and incorporate them into his or her portfolio design. Aadil Zaman and Syed Nishat of Wall Street Alliance Group have identified the following 10 developments which investors should be mindful of in 2018.

Lower Corporate Taxes. The new tax law reduces corporate taxes from 35% to 21%. This will result in companies using the extra profit, which they will make, to increase dividends, do share buy backs and participate in mergers and acquisitions. The net effect of this on the US stock market will be positive.

Repatriation.  Corporations, under the new tax law, are incentivized to bring their overseas money back into the US by providing them a tax break. This will especially benefit Technology and Drug companies who collectively have several trillion dollars sitting abroad.

Rising Interest Rates. The effect of the new tax law will be stimulated economic growth which will in turn cause inflation and lead to the Federal Reserve raising interest rates.

Banking Sector will get a boost: Due to rising interest rates and increased mergers and acquisitions the banks will end up making more money and the Financial sector will benefit.

Infrastructure Projects. This is a bipartisan issue which should get wide approval. In 2018 we anticipate increased infrastructure projects which would have a positive effect on companies that are involved in that space.

Increased Defense Spending. Under the Trump Administration defense spending will go up which will benefit companies that are involved in the Defense sector.

Geopolitical Issues: The biggest risk in the market remains the geopolitical landscape and the current administration's handling of it.

Trump's Russia Probe: This poses to be another risk in the market. The probability of an impeachment is low, but it does exist which creates some uncertainty.

Less Regulation: We anticipate a decline in the regulatory burden on corporations under the current administration.

Lower Individual Tax Brackets: Lower tax brackets under the new tax law will lead to people having more money to spend which will be advantageous for consumer staple and consumer discretionary companies.

A balanced and well diversified portfolio should be reflective of these trends.

Wall Street Alliance Group
www.wallstreetag.com 
75 Maiden Lane, Suite 234
New York, NY 10038
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Email: [email protected]

The opinions and forecasts expressed may not actually come to pass. This information is subject to change at any time, based on the market, the political environment, and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.

Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Wall Street Alliance Group and Securities America are separate companies.

SOURCE Wall Street Alliance Group