A Whole New Year for You to Profit

Happy New Year, and welcome back! I hope you enjoyed your holiday season with family and friends, and you’re looking forward to what 2018 has in store for us. Personally,I’m expecting another great year for the stock market. That’s because there are currently a few factors working in our favor. In today’s blog, we’ll take a look at precisely what these are.

First off, we just experienced an incredible holiday shopping season. Last week, MasterCard reported that its credit card sales between November 1 and December 24 soared 4.9% year-over-year. That was the fastest annual pace in the past six years. In fact, December 26 was the fourth-strongest shopping day in 2017, thanks to post-holiday discounts. So, no matter how you slice it, consumer spending is very healthy, which bodes well for strong GDP growth.

And according to the Commerce Department’s final reading, U.S. GDP growth increased at a 3.2% annual rate in the third quarter. That’s the fastest third-quarter economic growth in more than two years. And with the recent tax reform bill, many economists are expecting a nice boost to GDP growth in 2018 as well. With more than 80% of taxpayers expected to have less tax withholding this year, consumer confidence will come roaring back in the upcoming months, and that, in turn, should continue to boost consumer spending and U.S. GDP growth.

Speaking of tax reform, that brings me to my second point: an increase in corporate earnings. Thanks to corporate tax reform, American companies will be paying 21% or less in taxes, down from the previous 30% tax rate. That’s going to create windfall profits for many domestic companies, including the bulk of the companies on my Ultimate Growth Buy List.

My Ultimate Growth stocks are already the top echelon of stocks on the market, with robust earnings and sales growth, as well as strong buying pressure. Currently, our Buy List stocks are characterized by an impressive 35.8% average forecasted sales growth and a massive 170% average forecasted earnings growth. So, I look for our stocks to benefit from wave-after-wave of positive earnings surprises, as fourth-quarter earnings season kicks off in a few weeks.

After that, I look for our Buy List stocks to benefit from positive analyst revisions during the first quarter due to corporate tax reform. I’m particularly excited about what our Ultimate Growth stocks have in store for us in 2018!

But if you aren’t ready to join Ultimate Growth today, I urge you to stay tuned into this blog. I’ll continue examining the market fundamentals affecting your investments right here each day of the week.

Until tomorrow,

Louis Navellier

Louis Navellier

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