Weekly Market Commentary





American Flag - Market Commentary

Kathryn Watson – CBS News
Senate Passes Sweeping Tax Overhaul in Early Morning Vote

Summary: The Senate passed tax reform legislation with no Democratic support. The bill was approved 51-49 with only one Republican voting ‘no’. The bill permanently lowers the corporate tax rate from 35% to 20%. Tax rates will also be cut for individuals, but the cuts will expire in 10 years. 

Cargo containers - Market Commentary

Reuters
Second Estimate of US Q3 GDP up 3.3% From 3.0%

Summary: New data showed that the US economy grew at 3.3% during the third quarter. The estimate is slightly inflated due to a short-term boost from companies building inventories, but the results set-up the economy for the fastest pace of growth since 2014. 

Oil Pump - Market Commentary

Holly Ellyatt, Tom DiChristopher, and Steve Sedgwick – CNBC
OPEC and Russia Agree to Extend Oil Production Cut to End of 2018

Summary: OPEC and Russia agreed to extend current production cuts until the end of 2018. The initial agreement was set to end in March 2018. Major oil producers outside of the US will review the cuts again at the next OPEC meeting in June. 

Bitcoin - Market Commentary

Jonathan Spicer – Reuters 
Dudley Says Offering Digital Currency on Fed’s Radar

Summary: William Dudley, the Federal Reserve Bank of New York president, said that the Fed is “starting to think about” how it might offer a digital currency and if there could be a need for it. Dudley stressed that at the moment he does not see digital currency as anything more than speculation because “it’s not a stable store of value and it doesn’t really have the characteristics that you’d like to have in a currency.”

Robot - Market Commentary

Rich Miller – Bloomberg Technology
Robots Are Coming for Jobs of as Many as 800 Million Worldwide

Summary: According to a new report by the research arm of global consulting firm McKinsey & Co., as many as 800 million workers may lose their jobs to robots and automation by 2030. The effects of automation will be felt in both developed and emerging countries. There is a silver lining though, new jobs will be created to develop and deploy new technologies as well as building the infrastructure to support automation efforts. Read the full report here
 

Bloomberg Markets - Market Commentary

Chris Anstey – Bloomberg Markets
Goldman Warns That Market Valuations Are at Their Highest Since 1900

Summary: A recent research note from Goldman Sachs showed that market valuations are at their highest since 1900 which will likely lead to lower returns over the medium-term. Analysts said that rising inflation is a key risk for stock and bond portfolios. Additionally, because interest rates are expected to rise, bonds are unlikely to be as attractive as an equity volatility hedge as they have been in the past. 


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