(WTNH) — President of Heritage Capital LLC Paul Schatz shares some investing tips for 2018.
1: We report on stocks going up and down every day. What’s your outlook for 2018?
Schatz says stocks had the least amount of volatility, or ups and downs in 2017 of all time. For 2018, Schatz predicts more ups and downs. The market will continue to change in the short term, but Schatz worries that later this year, the bottom may begin to fall a little bit. The first six months of the year are predicted to shape out well for the markets.
2: Is it too late for people to invest?
When the market bottomed in 2009, very few people wanted to invest. Schatz says it wasn’t until the DOW hit $25,000 that people felt they had missed the boat. Schatz says if you can tolerate the risk of stocks, you can put in a little each day, week or month, which is called dollar cost averaging.
3: What are your thoughts on our local economy here in Connecticut? Where are we headed?
Schatz worries about what he says is a “fiscal and pension disaster” in the state. His concern is that Connecticut’s economy will not build up the strength to match up to other parts of the country. Small and mid-sized companies are not having the best of luck moving into our state. Schatz says the masses need to speak up, in order to make a change.
4: How will the new GOP tax reform bill affect the people of Connecticut?
The problem here in Connecticut is that we are a high income tax state. Under the new tax plan, you can no longer deduct more than $10,000 in property and income tax. The wealthier people in Connecticut can decide if they need to relocate, which can overall hurt the state. Schatz says the only benefit the tax reform package has for Connecticut is that the minimum amount you can deduct went from $12,700 to $24,000. This means most people are taking the standard deduction instead of itemizing on their taxes.