Tax Reform & the Dow

Trump’s tax reform to cut the corporate income tax rate from 35% to 20% will be a huge boost for the economy and place tremendous pressure on the rest of the world. But already we have Republicans playing games for personal careers. They want to postpone the cut for corporations until 2019 AFTER, of course, the 2018 mid-term elections. As always, they are afraid that the Democrats will point to the rich and regain seats.

The longer they delay, the greater the economic decline. This may be the fundamental behind our model which targeted November for a temporary high. Nonetheless, our Energy Models have peaked on the Daily level suggesting that we are still not really in a serious overbought position. That implies a correction is possible, but not a major crash and change in long-term trend.

Latest Posts

Gas Stove Warning Labels

Coming to a blue state near you, legislators would like to slap warning labels on gas-powered stoves. What is the warning? Lawmakers say that consumers should be aware that gas [...]
Read more

Influence vs Cycles

QUESTION: Mr. Armstrong, I don’t mean to be disrespectful, but it certainly seems obvious just how many governments are using Socrates. The head of Serbia has come out and said [...]
Read more