2018 is the 10th year of the current bull market for domestic equities. If market sentiment remains positive through the third quarter of this year, it will become the longest bull market in American history. “When will it end?” Unfortunately, no one knows or will know without the benefit of hindsight.

What we do know is the economy is strong, inflation expectations are subdued, and the recent tax cuts should contribute towards higher economic growth, all of which would normally be positive for the equity markets. However, it is unusual for tax cuts and fiscal stimulus to occur late in the business cycle, which could contribute towards an overheated economy, higher inflation expectations and more aggressive policy actions from the Fed.

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