Opinion: How to find companies that will benefit most from the Trump tax cuts The Republican-led tax cut has been an amazing gift to investors.
Analysts at Goldman Sachs think 2018 S&P 500 earnings will grow 14%, with more than a third of that coming from tax reform. That’s in the process of getting priced in to stock prices, and it helps explain the market’s strength so far this year.
Since tax reform passed, “much of the rally has been analysts doing forecasts for 2018 and adjusting the tax rate,” says Charles Mulford, an accounting professor at the Georgia Institute of Technology who runs the Georgia Tech Financial Analysis Lab.
There’s good reason for the rally. Theoretically, at least, the market value of a company should increase by the dollar amount of tax saved multiplied by the company’s price-to-earnings ratio, says Albert Meyer, a money manager at Bastiat Capital, which is up 177% since its April 2006 inception compared with 104% for the S&P 500 SPX, +0.44%
This is an..Read More →

Why you should worry about identity theft with the new tax law The 2017 filing season could be the worst yet for tax-related crime. With widespread confusion about the new tax law, IRS budget cuts, and a record-breaking year for data compromises, there’s an opening for fraud that should be serious cause for alarm, but doesn’t seem to be.
The bottom line: you should be concerned.
Last tax year, the IRS stopped 787,000 confirmed identity theft returns, totaling more than $4 billion. For the same nine-month period in 2015, the IRS stopped 1.2 million confirmed identity theft returns, totaling about $7.2 billion. There were many other widely reported wins. But what did not get reported was how much money scammers stole. Given the IRS’s estimate that 2016 would see a loss of $21 billion via fraud, one wonders.
That was then. The compromise of 143 million people in the Equifax EFX, +1.38% breach changed all that. It included Social Security numbers—compromised SSNs being the most common “..Read More →

The best thing you can do for the environment will also save you $234,000 This article is reprinted by permission from NerdWallet.
Sure, owning a home, driving the same car for 20 years, and forgoing daily coffee purchases can help you build wealth. But of all the financial choices you can make, the one with the most impact, by a long shot, is not having a child or having one fewer than planned.
It also turns out to be the best move for the environment.
Given the social and emotional value placed on family, that can be hard to hear, but if you’re undecided about the idea of parenthood, understanding the environmental and financial costs can help inform your decision. Here’s what you should know.
The cost to your retirement of having a child could top $2.5 million. The environmental cost While it doesn’t receive a lot of media coverage as a savvy environmental move, not having a child is the most effective single decision you can make to reduce your carbon footprint. The second-best..Read More →

A government shutdown ‘could reintroduce investors to the fact that markets go down’ The stock market sauntered to its third straight weekly win last week, but now the public servants in Washington just might help usher it to a weekly loss.
The federal government shutdown is poised to stretch into a third day Monday as negotiations over immigration continued to roil Capitol Hill.
“A government shutdown, even a brief one, could reintroduce investors to the fact that markets go down as well,” said Greg McBride, chief financial analyst at Bankrate.com, in an interview with NBC News last week. He expressed concerns about the coming week.
“Any government shutdown that persisted into the work week would breed plenty of the type of uncertainty that can rattle investors’ confidence,” said McBride, whose take served as a call of the day for our Need to Know column.
But pundits also are warning long-term investors against knee-jerk reactions to anything that happens in DC.
Historically, sh..Read More →

Dollar holds steady as investors wait for shutdown developments The dollar traded steady on Monday, with investors so far reacting calmly as a U.S. government shutdown entered its third day.
What are currencies doing?
The ICE U.S. Dollar Index DXY, +0.02% which measures the buck against a basket of six rivals, was last at 90.673, mostly flat. The index fell 0.4% last week, its fifth-straight weekly loss.
The broader WSJ Dollar Index BUXX, -0.14% was little changed at 84.52. It also fell 0.4% last week.
The euro EURUSD, +0.1964% rose to $1.2239, up from $1.2220 late Friday in New York.
The pound GBPUSD, +0.3321% rose to $1.3865, compared with $1.3853 late on Friday in New York. Last week, the British currency rallied 1%.
Against the Japanese yen USDJPY, -0.01% the dollar strengthened slightly, buying ¥110.85 compared with ¥110.79 late on Friday. Last week, the dollar-yen pair fell 0.3%.
Also read: BOJ and ECB expectations have trader hopes riding high for the yen and the euro ..Read More →