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December 20, 2017


With a new year comes potential market movers new and old, ranging from cryptocurrency to corporate capital spending to a possible tax-law overhaul. Quincy Krosby, Prudential’s chief market strategist, provides a guide to what we are facing in the first quarter in her Q1 2018 market commentary: Turning the Page.

Highlights:

  • While there are concerns that the bitcoin market could become a material source of volatility, bitcoin billionaires argue it is a distinctly non-correlated asset class that provides “alpha.”
  • The first quarter of 2018 should enjoy stronger growth as capital spending by companies continues to expand, and as global growth supports U.S. exports.
  • The prospects for tax reform and scaled-back regulations have spurred U.S. corporate and consumer confidence. As a result, mergers and acquisitions should gain pace in 2018.
  • Although projections for rate hikes include three moves in 2018 and two in 2019, much depends on the effects of tax reform and possible increase of infrastructure spending.
  • Chinese growth, while still solid, could slow as the authorities restrain government spending and place tighter controls on bank and online lending.


 


The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

 

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