(This post originally appeared on townhall.com | Image from towhnhall.com)
By Dan Celia
2018 Will Be a Year for Greatness and Growth
What a way to start the new year—the Dow hitting 25,000. This is the shortest period of time in the history of the index that a move of 1,000 points has happened in just 23 days.
From a market perspective, I am not looking for a 2018 to be what 2017 was. I’m not looking for 23 percent to 25 percent gains in the indexes. But I think with the cutting of more regulatory burden for large companies down to small businesses, tax reform adding to corporate earnings and an unparalleled business sentiment and consumer confidence, not to mention bringing home to America trillions of dollars, it will be almost impossible not to see 12 to 15 percent market growth (barring any major geo-political events).
But expansion in our economy, not just the markets, is the real story. Growth in corporate earnings, just by way of tax reform, could keep markets increasing and bring valuations in line. This will continue to create more corporate enthusiasm for growth and expansion. Ultimately, markets aside, it will be about the expansion and growth of the underlying fundamentals of the economy. I believe that 2018 will put us on the path of consistent 3 to 5 percent GDP growth over many years, and that will help shape the economic environment for many years to come.