US To See Massive Corporate Spending in Wake of President Trump’s Tax Reform

US To See Massive Corporate Spending in Wake of President Trump’s Tax Reform

US To See Massive Corporate Spending in Wake of President Trump’s Tax Reform

Corporate America strongly backs The Trump Administration’s tax reform, and is driving spending plans to multiyear highs.

Wednesday, in a Quarterly survey released by Deloitte LLP, a record number of CEOs & CFOs said that now is a good time to take greater risks, pushing up growth expectations for revenue, earnings, capital spending and hiring.

That confident sentiment is a response to the tax bill passed in December.

The survey was conducted from 12 – 23 February.

Fully, 9 in 10 respondents said economic conditions were good or very good, a high for the survey, which Deloitte began conducting in Y 2010

It’s the economy’s strength that underpins earnings optimism. Analysts surveyed expect Q-1 profits to rise by 17%

The report shows that there is a high desire for investment in the US and that is coming from just the structure of tax reform. The C-suite executives are expecting higher domestic wages, almost 40% are anticipating and planning for higher and front-loaded capital investments, and about 33% higher R&D. What they have reported is because of tax reform they are going to take these actions.

“There’s a dichotomy there versus the broader market and CFOs thinking about their own companies. It’s part of their DNA,” the Deloitte report said.

If you are a CEO and telling investors your stock’s overvalued, you are not going to be the CEO or CFO for very long.

Unless you are Tesla’s (NASDAQ:TSLA) Elon Musk.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 305.72 5 April 2018 18.78 289.34 306.26 288.2 19,048,500
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Neutral (-0.11) Neutral (-0.18) Neutral (0.23) Bearish (-0.39)


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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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