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Daily Capital

Happy Holidays (and Some Tax Reform)

The Dow, S&P, and Nasdaq all finished slightly lower on Friday, but higher for the week. President Trump signed the new tax bill, which slashes the corporate tax rate to 21% from 35%. The Dow & S&P posted gains for the fifth straight week. New home sales ended at a 10-year high in November.

Weekly Returns

S&P 500: 2,683.42 (+.26%)
FTSE All-World ex-US: (-.32%)
US 10 Year Treasury Yield: 2.48% (+.5%)
Gold: $1,275 (1.5%)
EUR/USD: $1.186 (+.9%)

Major Events:

  • Monday – New tax bill proposal jolts municipal bond market
  • Tuesday – Humana and two private equity firms agree to buy Kindred Healthcare
  • Wednesday – U.S. home resales surge
  • Thursday – Voya Financial to exit Individual annuities business
  • Friday – President Trump signs tax bill into law

Our Take:

The long anticipated GOP tax bill has finally arrived with the biggest impact being on the headline corporate tax rate dropping to 21% from 35%. This bill will provide a tax cut for the vast majority of families, but high earners in the highest tax states, like California and New York, will be impacted hard. This bill is expected to add to add between $500 billion to $1.5 trillion to the federal debt. Long term, this will shorten the timeline for entitlement programs, like Social Security and Medicare, to be addressed.

You can read more about the tax reform act and how it may impact you by reading yesterday’s post. You can also speak with your financial advisors and tax professional.

We wish you all a great holiday with family and friends!

Contact a Financial Advisor

The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Any reference to the advisory services refers to Personal Capital Advisors Corporation, a subsidiary of Personal Capital. Personal Capital Advisors Corporation is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training nor does it imply endorsement by the SEC.

Amin Dabit is the Vice President of Advisory Services at Personal Capital. Amin brings over a dozen years of experience in private wealth management and financial planning. Amin leads Personal Capital's advisory team to identify and establish strategies for reaching clients' financial goals by providing comprehensive, customized financial advice designed to improve their financial lives.
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