Tax reform is here

Following months of debate and negotiations, Republican leaders have crossed the finish line on tax reform, passing the most sweeping tax legislation in more than 30 years. What are the implications for financial markets? And how could the bill affect investors' personal taxes?

Key Takeaways:

  • Our strategists expect tax reform to boost S&P 500 earnings per share by about 6%-10% in 2018, raising CIO's year-end S&P 500 target range to 2850-2950.
  • While added fiscal stimulus could boost inflationary pressures, CIO still expects only a gradual rising interest rate environment.
  • While select provisions in the bill have resulted in a year-end jump in municipal bond supply, our strategists expect this effect to fade in the New Year.

In a new issue of POTUS 45, "Tax reform investment implications (PDF, 1 MB),"CIO Americas, Wealth Management (CIO) offers timely insights to help investors prepare their portfolios for the potential impact on equity and fixed income markets. UBS Advanced Planning has also released a report (PDF, 223 KB) offering one of our most detailed breakdowns yet of the personal and small-business tax considerations.

Also be sure to read CIO's latest views on the likely impact of new tax legislation on S&P 500 sectors in a new issue of US equities, "Sector implications of tax reform (PDF, 242 KB)."

For a high level overview of how taxpayers can prepare in the year ahead, tune in to a podcast interview with one of the UBS strategists behind the Advanced Planning report.

Are you prepared for tax reform? Together we can find an answer. Connect with your UBS Financial Advisor or find one.