Dipping into the political arena, Doll said Republicans will lose the House of Representatives in the upcoming mid-term elections but will hold onto the narrower majority in the Senate.
The federal debt and federal deficit “are unlikely to become a problem as long as the economy is growing,” he added.
Thought leaders across the board seem to agree 2018 will continue 2017’s good news with a few bumps along the way.
Last year was marked by low volatility and exceptional market returns. David Joy, Ameriprise chief market strategist, said, “It may be tempting to assume that 2018 will not be as rewarding as last year, not this late in the economic cycle, and certainly not starting out the year with valuations as full as they are.”
But it could happen.
“If the current bull market survives until Labor Day, it will become the longest in history. For it to get there, a lot will have to go right. But from the vantage point of New Year’s Day, it certainly has a chance,” he added.
“Tax reform could boost the U.S. economy enough to produce growth near 2.75 percent. If it does, it would be the strongest annual growth of this expansion. And, it will be getting help from the rest of the world as global growth accelerates to 3.7 percent, according to the International Monetary Fund’s projection. That would be its strongest pace since 2011, and assumes just 2.3 percent growth in the U.S,” Joy said.
According to Factset, U.S. corporate earnings are forecast to grow by 11.8 percent, the fastest pace since 2011 and coming after an expected final growth rate of 9.6 percent in 2017. The 2018 projection could be subject to upward revision with the full effect of tax reform factored into the forecast.
Voya also is predicting a positive year.
Assuming the economy avoids recession in the next 12 months, past experience suggests that equities will move even higher, said the Multi-Asset Strategies and Solutions Team at Voya Investment Management.