Are you looking to cash in on profits in 2018? According to Jeff Yastine, who is an expert in the matter, you would be well advised to look into mergers and acquisitions. You have surely heard the news about the biggest merger and acquisition in 2017 that was just recently announced. Disney said that they were going to buy 21st Century Fox. In other related news, there is the tax bill that pushes a new tax plan. This tax bill will surely help large corporations, as it reduces the corporate tax rate to just twenty one percent. There are other pieces of the puzzle that an experienced investor can see. For example, there is the issue of consumer spending. It just hit a one month high. This high was not seen since 2009, when the economy bounced up after the great recession.
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You have to take all of these things into consideration and put two and two together. If Disney is purchasing Fox, then there are probably other companies who think that now is a good time for mergers to be profitable. The fact that consumers are buying more means more companies will have more money and will be more likely to buy out other companies. The fact that they have to pay fewer taxes means they will have more money as well.
However, according to Jeff Yastine, there is something else that is much more important than this. There is a lot of good corporate sentiment. In other words, many corporate executives are optimistic about the future of the economy. This will make it more likely for mergers to be approved. For example, in a survey, two thirds of corporate executives said that they increased their cash reserves, and that the main reason for having a cash reserve is for if they want to make a merger or an acquisition.
In fact, in another study, forty percent of companies said that pursuing a merger is their number one intended way of growing their business, as opposed to the number one way of growing a business a few years ago, which was to make in house investments. More info about Jeff Yastine at tumblr.com
In order to cash into this trend, says Jeff Yastine, you should bet on individual stocks. An even better way is to invest in an ETF.
Jeff Yastine is a financial journalist and the editor of Total Wealth Insider.
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