DAVOS

Davos

Tax reforms are the biggest driver per CEO Pinkus of McKinsey &Co. Benefits will cascade down to lower levels from the front office to the employees. To illustrate how this is happening there are about 200 plus companies that have given bonus payments to their emplyees because of the tax reform law. 11 years of down or no growth and this is the 1st in that time wqith some growth. 1st year of an up swing. Possibly more to come.

Foreign countries are now looking to the US as a good invetmet areana. The US is not in the bottom ? of the tax structure but more toward the middle of taxes. However even this shift makes the US more palatable for investment by other countries. In general a positive attitude in manufacturing and in goods and services.

Another point: prediction on robotics in the work place: more jobs for US workers but to take advantave US labor force needs to focus on “re-skilling” it’s workers towards up coming new wave jobs.

Last Point: Trump at the Round Table with other business leaders from diverse countries. All pledging to invest in the US. This is a ‘Sea change”. Money and trade are coming to the US in massive quantities.

Additional Points:

Tax reform drives the GDP over 3 %

Dave McKay Presidnt of Royal Bank of Canada (RBC) cites that NAFTA needs to be redone to be equitable to the US. McKay relates that Canada invests in the USA and wants the confidence of equitable partnership.

African American unemployment the lowest it has been since the records first started tracking the statistic.

Banter: It’s the ECONOMY stupid. For every regulation Trump passes he repeals or strikes down 16 current ones.

Strraw polls: our unit calls 150 busines per day per person or about 4500 per week.

Our collective impression of the corporate community is: Attitude is upbeat, confident, and forward looking. Corporations are spending money on infrastructure. Nobody thinks we are ‘out of the woods’ yet but the attitude is bright and corporations are beginning to spend cash.

As goes Jan. so goes the whole year.

Predictions: 1) By June 2018 Look Out! The Go-Go 1960’s and the Booming 1990’s will fade to nothing when this economy takes off.

2) Mid term elections: Dems lose more ground in US House and Senate.

3) Wanna make some cash? Get in front of this economy. Get your goods and services out where they can be tapped into, have backups if you are good at what you do because you will be swamped. There is a huge pent up desire to buy, refurbish and to build.