A review of 2017's economy

U.S. stocks closed lower on Friday, although Wall Street finished off one of its best years in a long time.

The Dow raced 25% higher in 2017, getting even closer to 25,000 along with doing This kind of year its best since 2013.

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The index breezed through milestones. the item had taken the Dow 14 years to climb via 10,000 to 15,000, although just three along which has a half years to reach 20,000 in 2017.

The S&P 500 along with Nasdaq also had their best years since 2013. The broader S&P 500 zoomed 19%. along with the Nasdaq jumped an impressive 28%.

The booming stock market can be the result of resurgent economic growth along with blockbuster corporate profits. The biggest catalyst was likely the sweeping tax cuts President Trump just signed into law, which over time will save corporate America billions on what they owe Uncle Sam.

Crucially, the tax law provides incentives in which encourage companies to return foreign profits held overseas. Moody’s estimates in which mountain of offshore cash totals a record $1.4 trillion.

The trust can be in which companies will use some of in which repatriated cash to create jobs with completely new spending on equipment along with factories. However, Wall Street can be anticipating a big chunk of the money will go towards share buybacks along with paying down debt — moves in which should further juice stock prices.

Trump has repeatedly bragged about roaring stock prices. “70 Record Closes for the Dow so far This kind of year!” Trump tweeted on December 18. He added, “Wow!”

The stellar year on Wall Street was unusual in in which the item lacked the type of sharp retreats in which often accompany rallies. The S&P 500 hasn’t suffered a meaningful pullback since prior to the election, along with volatility metrics have plummeted to record lows.

At nearly nine years old, the bull market can be today the second-oldest along with second-strongest in history.

Many Americans view stocks as a barometer for the economy. Consumer confidence has soared to 17-year highs. the item’s also created more wealth for many households.

Yet millions of Americans can’t feel the stock market boom — because they have little to no money within the market. Just 18.7% of taxpayers own stocks directly. Roughly half of Americans participate within the market through an employee-sponsored retirement plan, according to a Pew analysis of Census Bureau data. in which gap has contributed to record-high wealth inequality in America.

Those who missed out on the bull market may wonder if the item’s too late to get in today. Yet most market strategists are predicting more gains in 2018, especially as the impact of the tax overhaul are felt.

If the tax plan creates the kind of growth Trump has promised, the market could have a lot more room to run.

although Moody’s recently estimated the tax law will only add 0.1 or 0.2 percentage points to 2018 GDP growth. JPMorgan anticipates a bigger boost of 0.6 percentage points.

The catch, according to JPMorgan Funds chief global strategist David Kelly, can be in which the “bump to growth in 2018 will likely be a one-year wonder.”

–sy88pgw’s Lydia DePillis contributed to This kind of report.

sy88pgw (completely new York) First published December 29, 2017: 9:39 AM ET