Unleashing a Global Sharknado of Growth

Main content

Retail sales increased .4% in December to all-time high of $495.4 billion and October and November sales were revised up, capping the year with the strongest sales growth since 2014 and affirming robust economic momentum going into the new year. Now that tax cuts will be feeding additional income to consumers, investors can expect continued consumer strength. Many predicted tax cuts would help only shareholders via share buybacks and higher dividends. That is not turning out to be the case as every day companies are announcing wage increases, one-time cash bonuses and benefit enhancement packages for workers. The U.S. economy has not experienced substantial tax cuts in decades. And the moving pieces of the more-than-ever-global economy are so fluid, predictions cannot accurately encompass all the possibilities. One thing is for sure: the tax cuts have unleashed a Sharknado of growth. That growth may also extend to other countries with now higher tax rates, thus a competitive disadvantage. The proof will be in the pudding but so far the pudding is pretty darn tasty – once again the equity markets are breaching all-time highs.

Please read the Global Perspectives 2018 Forecast for more in-depth analysis of the economic changes ahead.

Footer content