The Rea Report Spring 2018 | Page 16

Be Mindful The Winds Of Change (continued from page 11) famous people (continued from page 15) paid back. As such, either spending will have to come down (dramatically) or taxes will have to go up (substantially). This is not politics; it’s math. TAX REFORM CHAMPIONS The deficit has gone away as a public concern due to the success of the sequester spending cuts. The tax cuts will end that positive trend, and the continuing retirement of the baby boom generation will make it worse. The existing trend has changed. Expect to see the deficit back as a big issue sometime in the next five years. THE TAX CUTS AND JOBS ACT has been a game-changer and members of the Rea team have worked to keep clients and the general public informed of the changes that lie ahead. 3 Gl obalization We have not seen the end of globalization, but we have seen the end of its golden age. The U.S. is disengaging (and it is not just President Donald Trump); Europe continues to face challenges in Britain, Catalonia, Germany and other countries; and China is rising globally, with Japan responding. Given all of this, the rise in trade that has tied the world together, cut costs and created peace and prosperity looks likely to be hitting, at least, a pause. Again, this is a change in trend that we can already see underway. THE BIG PICTURE The big picture is that three major tailwinds, which we have had for a decade or more, are in the process of at least subsiding and, possibly, turning into headwinds. Things are likely to stay good for a while —probably another year or so is my best guess. At the same time, we can see the weather changing. There are good trends, with the movement of the millennials into their peak earning and spending years being one of the biggest. We need to focus on those as well. For the moment, however, with things as good as they are, the greater need is to keep an eye on the trends changing for the worse. So says Eeyore, anyway. Originally written by Brad McMillan and published on The Independent Market Observer blog on Dec. 6, 2017. Brad McMillian, CFA, CAIA, MAI, is chief investment officer at Common- wealth Financial Network ® , member FINRA/SIPC, the nation’s largest privately held Registered Investment Adviser – independent broker/dealer. To read more of Brad’s expert insight and commentary, visit blog.commonwealth.com/independent-market-observer. The following team members have helped produce a variety of key educational re- sources, have spoken at local events and/ or have emerged as thought leaders on the topic of tax reform by participating in webinars and podcast episodes. NORTHEAST OHIO REGION • Chuck Battiato • Bruce Bechhold • Dan Holben • Susan Kornatowski • Cindy Kula • Dave McCarthy • Judy Mondry EAST CENTRAL OHIO REGION • Brian Kempf • Jordan Miller • Mark Fearon • Ben Froese WEST CENTRAL OHIO REGION • Christopher Axene SOUTHEAST OHIO REGION • Inez Bowie • Maribeth Wright REACPA.COM – NOT JUST ANOTHER WEBSITE – YOUR NEW FAVORITE BUSINESS RESOURCE! Burning Down the Burtons Burton Metal was faced with a decision no business owner ever wants to make – walk away or rebuild. Read The Story. Check out REAL REA STORIES and so much more at www.reacpa.com.