Month: January 2018

What a government shutdown means for your investments

All the headlines for the past few days have been focusing on the potential government shutdown which takes place at midnight tonight. It doesn't appear that either side is willing to back down at this point and the best case to avoid a shutdown may be another short term deal. But I'm not here to talk about politics and the politicians inability to compromise and find middle ground. We have to consider what the shutdown means to our clients' investment portfolios.

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China policy to reshape 21st century economy

Back in 2013, China's President Xi Jinping announced the One Belt One Road (OBOR) initiative to modernize infrastructure along the ancient Silk Road trading routes. This policy is poised to reshaped the 21st century economy. The project is a potential win win for China and its surrounding neighbors. For China, it seeks to create trade and investment opportunity in infrastructure and construction providing China with a new channel to broaden its export market. For its neighbors, they will benefit from modernized roads and power plants which will help their economies flourish and grow. This rising tide should lift all boats!

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Buffett: huge tax cut isn’t baked into market

Warren Buffett believes that the corporate tax reform is very bullish for the US stock market, and more importantly, isn't fully priced in to stock prices.

“The tax act is a huge factor in valuation,” he said on CNBC's “Squawk Box” on Wednesday. “You had this major change in the silent stock holder in American business who has been content with 35 percent… and now instead of getting 35 percent interest in the earnings they get a 21 percent and that makes the remaining stock more valuable.”

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