Accelerating Earnings, Surging World Growth, And Stocks Break A Record Again
Meanwhile, the Conference Board's newly released index of leading economic indicators continued to show great strength and also cited the new tax law in its outlook.
"The U.S. LEI continued rising rapidly in December, pointing to a continuation of strong economic growth in the first half of 2018," said the Conference Board's economic analysis team. "The passing of the tax plan is likely to provide even more tailwind to the current expansion. The gains among the leading indicators have been widespread, with most of the strength concentrated in new orders in manufacturing, consumers' outlook on the economy, improving stock markets and financial conditions."
After almost two years of moving sideways in 2015 and 2016 - with two stunning plunges along the way - the S&P 500 broke out of that range after the November 2016 election. The new tax law has been a key driver in the current leg of the bull market. Every time news broke about the tax cut moving ahead, stocks got a bump up. The index climbed 33% since the election and surged just 6% since the new tax law was enacted at the end of the year. What is becoming more evident is just how much of a game changer the tax law is.
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