Fundamentally Strong

(1) While valuation may be an issue, earnings are no problem for stock prices. (2) Measures of business revenues growth are strong. (3) S&P 500/400/600 forward revenues rising in record territory. (4) January M-PMIs confirm that global economy is strong. (5) TCJA has boosted analysts’ 2018 EPS consensus for S&P 500/400/600 by 6.2%, 5.1%, and 6.0% so far. (6) Each quarter of 2018 likely to show double-digit growth rates for S&P 500 earnings. (7) TCJA likely to reduce federal corporate income taxes from $283 billion last year to $211 billion this year.