The Dow, S&P, and Nasdaq all finished slightly lower on Friday, but higher for the week. President Trump signed the new tax bill, which slashes corporate tax rate to 21% from 35%. The Dow & S&P posted gains for the fifth straight week. New home sales ended at a 10-year high in November.

Weekly Returns

S&P 500: 2,683.42 (+.26%)
FTSE All-World ex-US: (-.32%)
US 10 Year Treasury Yield: 2.48% (+.5%)
Gold: $1,275 (1.5%)
EUR/USD: $1.186 (+.9%)

Major Events:

• Monday – New tax bill proposal jolts municipal bond market
• Tuesday – Humana and two private equity firms agree to buy Kindred Healthcare
• Wednesday – U.S. home resales surge
• Thursday – Voya Financial to exit Individual annuities business
• Friday – President Trump signs tax bill into law

Our Take:

The long anticipated GOP tax bill has finally arrived with the biggest impact being on the headline corporate tax rate dropping to 21% from 35%. This bill will provide a tax cut for the vast majority of families, but high earners in the highest tax states, like California and New York, will be impacted hard. This bill is expected to add to add between $500 billion to $1.5 trillion to the federal debt. Long term, entitlement programs, like Social Security and Medicare, will be addressed down the road.

You can read more about the tax reform act and how it may impact you by reading yesterdays post. Speak with your financial advisor and tax professional to earn how the tax changes may impact you.

From Personal Capital, we wish you all a great holiday with family and friends.

Amin Dabit is the Director of Advisor Services with Personal Capital. Along with the EVP of Advisory, Amin helps lead Personal Capital’s financial planning experience and advice. Amin brings over a dozen years of experience in private wealth management and financial planning. Amin works with the advisory team to identify and establish strategies for reaching clients' financial goals by providing comprehensive, customized financial advice designed to improve their financial lives.