2018: Economy Hums While the Market Drops
By Clint EdgingtonPosted on January 8th, 2019
2018 is a perfect lesson in the market discounting future economic information. If I were to tell you the economy would run churn as the below stats show, what would you imagine the market to be?
1.) Largest corporate tax cut in my lifetime
5.) Massive tax cuts
Would you think all risk assets would have negative returns? Why? Because the market is now looking ahead to 2019, 2020 and beyond. 2018’s positive economy was predicted by, and pulled forward by the market in 2017. Current economic statics have nothing to do with stock returns! In short, today’s market only looks at tomorrow’s economy.