The U.S. president-elect’s victory and the Italian’s declination of reform in the waning months of 2016 was a final crescendo for a central theme of 2016, populism. Additionally, stresses in regions like the Middle East and East Asia were accompanied by growing inequality and unrest, while concerns over the refugee crisis and a snowballing income gap were key drivers in the result of the Brexit. Despite news headlines on these topics injecting volatility into the markets this year, the U.S. equity markets have remained surprisingly resilient.
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By enacting progressive trust laws building on the uniform trust code, Tennessee is attracting a growing number of family offices that are seeking flexibility to adapt to changes in family circumstances and the world around them. One such change was adding the "common sense" provision that expanded the definition of "family member" or family client who may be served by a private family trust company.
Governments and individuals now have to deliver on the promises that they have made. In other words, the rhetoric of last year has to be translated into policy and investment reality. Investors may also have to get used to a world characterized not only by divergence, but also by a continued threat of disruption. We are living in a complex world but investors should not assume that events are so unpredictable as to be impossible to prepare for. Looking at the economic and political landscape, 10 key investment themes emerge for 2017.
Looking in the rear view mirror on the global markets—including the resurgence of populism, the Fed’s annual rate migration, and portfolio positioning—another up year is in the books for U.S. equities, with 2016 marking the eighth consecutive calendar year to have a positive total return on the S&P 500 Index. This time around the U.S. large capitalization index posted a resilient 11.95 percent total return with 2.41 percent coming from dividends and 9.5 percent from price appreciation.
Significant tax reform is likely on the horizon. Given the proposals from President-elect Trump and the Republicans in Congress, we may see legislation repealing the current estate tax passed in 2017, and potentially changes to the gift and generation skipping transfer (GST) tax rules. There is a global precedent for the removal of an estate tax, and Canada serves as one example of what the proposed tax reform may look like in the U.S., which could mean the implementation of a new capital gains tax at death. The uncertainty regarding the future of tax law in the U.S.
President Trump was inaugurated into office last week amid rallies and protests lining the streets that continued into the weekend. In his first few days in office, Trump has already put forth executive orders to freeze new agency regulations, withdraw from the Trans-Pacific Partnership, and renegotiate the North American Free Trade Agreement. These actions will have strong effects on production and trade for the U.S. on a worldwide scale. While the domestic growth forecast may be notably improving, investors are on standby to determine which campaign assurances will become reality.
As the benefits and capabilities of the Internet of Things (IoT) accrue, so does the amount of data that must be collected, managed, and integrated with connected devices—and by enterprises everywhere. It’s a challenge that demands a new kind of digital trust and data sharing tradeoffs. For more insights from this IoT series, see:
The Internet of Things (IoT) has inspired unprecedented cooperation and coordination for the businesses and industries interested in ensuring a sustainable future for themselves. From the lens of eleven case studies, see how the IoT revolution is transforming the world in which we live in. For more insights from this IoT series, see:
The rise of the connected objects known as the Internet of Things (IoT) will rival past technological marvels, such as the printing press, the steam engine, and electricity. As IoT solves problems that have plagued businesses for decades, it will also create entirely new dilemmas across all sectors and for all industries. Concerns over privacy, cybersecurity, and property and products liability will quickly become just as robust as the opportunities IoT presents.
After a sharp stock market rally that ensued immediately after Trump’s come-from behind victory, financial markets have moderated as the realities of governing in the real world have begun to sink in. Investors were initially enthused by Trump’s plans to cut corporate and personal income taxes, reduce business regulations, implement a $1 trillion infrastructure program, and negotiate trade deals more favorable to the United States. While supportive of the ideas, Republicans are wondering how all of this will be paid for.