1st Quarter Market Update


We just wrapped up a fantastic year in 2017 for investors. What's next? We'll discuss the outlook for stocks as well as the potential winners and losers from the new tax law that passed at the end of 2017.

There are a few clear opportunities as well as some pitfall areas that you will want to avoid as a result of the new tax law has created.

A few topics that you need to personally consider are

- New uses for 529 accounts

- A different approach to charitable giving

- 2018 is last year to claim medical expenses in excess of 7.5% of AGI

- Home equity loans are no longer tax deductible

- Non-investment real estate tax benefits are eliminated

- Approx 50% of US taxpayers will surrender all their itemized deductions

Winners and losers

- Private schools / religious teaching institutions benefit from new 529 rules

- Manufacturing may see a surge in investment spending as new capital expenditures rules are favorable for a limited time

- Municipal bonds may suffer as the tax free nature is less attractive when overall tax rates are lower

- Home improvement industries my be hurt by tax deductible status of home equity loans

- Small companies focused on US operations will likely benefit more from the reduction of corporate taxes to 21% from 35%, larger multinational companies may not be impacted as much due to global tax strategies already in place.

- US Stocks in general will have a surge in after tax earnings to distribute or deploy due to the 14% immediate tax reduction.

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