The US economy appears very healthy. Unemployment is down to historically low levels and we are finally seeing some wage inflation.
This is helpful because consumer spending drives 70% of the economy. Politically, the environment of less regulation is positive for corporations, and the recently passed tax reforms will boost profits and increase return of capital. Some of that cash may be used on capital expenditures, benefitting industrials, materials and technology companies, but much of it will likely be returned to shareholders through dividends and share buybacks. It should be no surprise that the consumer sector would benefit from a strong economy. Financials should also perform well, with more people tak...
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