A recent article in Barron’s outlined commentary by members of the publication’s 2018 Roundtable regarding the economy and stock market.
Members included DoubleLine’s Jeffrey Gundlach, Mario Gabelli, Abby Joseph Cohen of Goldman Sachs, Epoch Investment’s William Priest, and Meryl Witmer of Eagle Capital Partners, among others. The panelists, the article says, are sharing a generally “jolly” mood, “And why not? U.S. stocks returned an impressive 20% last year, and are off to the races again this year, propelled by expectations of good economic growth and robust corporate earnings.”
The new tax law is a positive force, the experts say, and will encourage companies to repatriate cash. “As the money flows home,” they argue, “expect fresh investment stateside; more mergers and acquisitions; and, yes, more dividend payments and stock buybacks to fatten investors’ wallets.”
Increasing Treasury yields are a concern for some, particularly since a strengthened economy will lead to further tightening by the Fed. Panelists, the article says, are collectively concerned about a “potential resurgence of inflation and credit-tightening on a global scale.”
Economic fundamentals, the tech sector, and bitcoin are among the many other topics discussed.