The earnings should be good with still low interest rate, tax cut...
However, the market is still over-valued - about 24 P/E vs. the average
15.
It would boost the market. The negative considerations are
geopolitics including the possiblity of a global trade war and now
Syria. The market is fundamentally unsound and technicals has been
changed from sound to average (SPY is now negative in SMA-20 and 50 but
positive in SMA-200).
With rate hikes, banks should be doing well for
the coming year. My CDs (15 months) pay about 2.5% and then they lend
far higher rate to their customers. Hence it is easy money for them if
the loans are not risky.
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