After experiencing the biggest losses in two years, the major indices have come roaring back again with the Dow up over 500 points to 24,725 or about 2.2%, and the Nasdaq and S&P500 both up over 1.8%. Advancers are firmly outpacing decliners 2121/812 on the NYSE and 1535/9879 on the Nasdaq. Energy, Industrials, Materials and Technology are among the leaders while Real Estate, Telecom and Utilities lag.
President Trump unveiled his proposed 2019 budget, which propelled stocks higher, that includes additional spending for border security, military and to help tackle the opioid crisis. In addition, the administration unveiled the long-anticipated infrastructure bill. Some of the key components of both include:
o $100 billion for states and municipalities in matching funds for infrastructure projects
o Federal funds will pay up to 20% of a project
o $50 billion for rural infrastructure projects
o $20 billion for financing risker cutting edge projects
o Additional $20 billion for public-private partnerships
o Overhaul the federal permitting process to shorten the approval process to two years or less
The budget assumes economic growth of 3% this year and 3.2% next year. However, it appears to increase the deficit to 4.25% of GDP this year, and 4.7% next year. There will need to be spending cuts and Medicare, Medicaid, and student loans could be on the chopping block. There is a long way to go before the budget becomes reality, not to mention that an actual two-year budget was just signed last week.
|What needs to happen regarding social security, medicare, Medicaid is to raise the minimum retirement age from 62 to 64, eliminate the 50% to spouses, whose spouse is still living, and who have never held a job. Open clinics for Medicaid recipients much like the VA administration. Education costs have to be reigned in; performance has not increased vs money spent. Want to see pilot programs in inner cities to form a program much like private boarding schools. The kids would only see their parents over the weekend to keep them from living in poor living environments. It would give them a better environment to study and learn successful habits. In the long run money would be saved by hopefully less teenage pregnancy, drugs, and jail..|
barbara on 2/13/2018 11:57:02 PM
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