Today’s post is a weekly recap in what was a tumultuous week in Washington. A post at any time was likely to be outdated by the time I posted…what a week! Here’s what we learned.
$1 The health care debate is now dormant after much ado. The large health care insurers are now in a bit of a lurch as they announced their withdrawal from Affordable Care Act exchanges. Short term, this is likely bad news for investments in this space. Long term, there is some hope that a more bipartisan effort to improve the ACA will happen in the future, helping consumers and insurers alike.
$2 U.S. oil rig counts continue to rise, despite oil prices remaining below $50 per barrel. OPEC is under pressure to cut production to nudge prices higher. OPEC needs prices north of $60 to be profitable. I will continue to keep tabs on U.S. producers and refiners as a result.
$3 Perhaps the biggest reason the markets have grown since Trump’s election is the expectation for tax reform, which Congress vowed to take up next. If tax relief arrives for businesses, we could see the single largest repatriation of money the U.S. has ever seen. Bipartisan support for reform seems to still be in tact. Another big legislative movement to watch closely.
That’s all for now.