Jeff Carbone, managing partner for Cornerstone Wealth, said there was “no real impetuous” for Monday’s pullback. “The backdrop of the economy is strong corporate earnings, positive economic data and tax reform. The fundamentals have not changed,” Carbone said. “Investors have been looking for a catalyst to sell off, and rising interest rates [and] inflationary signs, along with concerns of the Washington memo, are in the spotlight.”
Jeff Carbone, managing partner for Cornerstone Wealth: “We are reminding clients to keep this in perspective and look to be proactive not reactive to the markets at this time. It is a big emotional test of…risk tolerance; we all want the upside but remember there is downside risk and goals, risk tolerance and time frames must always lead one’s investment decisions.”
Expectations of lower corporate taxes have been a boon for U.S. stocks since President Donald Trump got elected, helping the major indexes reach all-time highs. Jeff Carbone, managing partner of Cornerstone Financial Partners, said that, without a corporate tax cut, stocks could suffer a 3-to-5 percent pullback in the short-term.
"All the economic data suggests we have more room to the upside," says Jeff Carbone, managing partner of Cornerstone Financial Partners. "I wouldn't be surprised if we got to 24,000 by year-end, especially if we get tax reform."