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2018 Starts with Strong Gains in Stocks
The first full week of trading in the new year saw the average U.S. stock gain about 2% and 1% for foreign stocks. Many Wall Street observers think this may be the start of yet another excellent year for U.S. corporations as the effect of the new tax rules begins to sink in.
On the other hand, interest rates are on the rise which could eventually dampen enthusiasm for stocks. We should pay close attention to economic growth rates, corporate profits, and interest rates to get some sense of how our investments will fare. .