Greycourt’s Take on Investing and the Tax Cuts and Jobs Act

The recently passed, and hotly debated, Tax Cuts and Jobs Act (The “Act”) is dominating investor attention today. Love it or loathe it, the Act will almost certainly have a near-term positive impact on growth, profits, confidence, spending and investment, and the prices of stocks and other risk assets.

In our view, however, the Act’s impact on the real economy and profits is likely to be fleeting, and its impact on long-term expected returns negligible, because current market pricing substantially reflects the benefits of the Act.

The attached file outlines our views on the Act and its implications for strategic portfolio design, identifies some examples of opportunities for active management, and summarizes our key near-term return expectations.

Download the (PDF) here »

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