Looking across the globe

When you look across the globe, you see more synchronized global growth now then we have seen in 5or 6 years. The fact that more economy's globally reflect that economic growth like Europe grinding higher or Japan Grinding higher and the U.S. continues to chug along at a 2ish kind of pace . It is still a good environment for equities and the markets are Kinda telling you that with rates under control and inflation under control, that it is good environment for equities. I think you can move higher , particularly if you get some policy developments.If we get the next leg of the market rally it is because their will be a big swing in corporate earnings because the President gets his Tax cut program through or not. That tax cut is worth $10 dollars in earnings to the S&P500 . Also , a repatriation of corporations money overseas with also be a boost corporations in the form of dividend increases and stock buybacks as well as increased capital spending. So the S&P500 instead of earning $132 dollars will earn a $142 dollars. The Implications are clear , the market cannot make a significant leg higher without tax cuts and earnings increasing as a result of policy changes.John C. Verducci 111