Equities Market Perspective: US tax reform - unleashing of 'animal spirits'?


President Trump passed his historic Tax Cuts and Jobs Act reform in December 2017, in this month’s update Ritu Vohora, Investment Director, looks at the implications for US tax reform on equities

How will the tax cuts impact the corporate sector? How much is priced in already and will the new fiscal stimulus provide a boost to US growth?

Ritu also reviews the market trends in January - as global macro data improved and the earnings recovery continued, cyclicals led performance whilst defensives lagged

Stocks sold-off in the last few trading days of January on concerns of rising inflation and bond yields  - the correction in risk assets is potentially a pause for breath after the sharp rally over the past year

It’s important to remember that periods of volatility, where valuations become more attractive, can provide opportunities for active, long-term investors

The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested. Where past performance is referenced, please note that this is not a guide to future performance.


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