This market needs another booster. As it makes a transition from monetary stimulus (easy money), it needs something new to advance it. The new tax bill could be just that. Especially if we get one that has a tax cut (fiscal stimulus), then perhaps the economy can absorb the withdrawal of easy money and have the boost to power ahead.
So, what are the odds? Actually, pretty good. There is a consensus for a corporate tax reduction. More money for more profits equal higher stock prices.
For individuals, the tax overhaul effect may also be a plus, putting more money in hands that will spend it; again, higher profits.
So, watch the tax debate; we are. So far, we are encouraged; stay steady my friends.
The Lonely Bull