What a year it was! From Trump tweets to #fakenews, it has been quite a year. For our area of expertise, however, the most impactful will likely be the Tax Cuts and Jobs Act that was signed into law on December 22nd. Therefore, I will keep my comments short to provide more space for a summary of the Act.

The Economy

The economy seems to have finally shifted into third gear, with growth for the past 9 months around 3%. Most economists expect decent growth to continue in 2018, with the Tax Act providing additional stimulus.

The Market

This has been a solid year for the equity markets, especially foreign stocks. Keep in mind, though, that valuations are stretched for US stocks. The market is the most expensive it has ever been for the median stock, household margin debt is the highest it has ever been, and the percentage of stocks households own is the highest since 2000. This doesn’t mean a crash is imminent; it does mean caution is warranted.

The Firm

LPL launched new statements late last year. While a vast improvement, the rollout has not been without glitches. Thank you for your patience. LPL has indicated that later in 2018 they are planning on rolling out a better, more interactive mobile app.Anyway, as I said earlier, let me keep this short. As always, thank you for your friendship and your trust.