We recently had the privilege to interview Luke Tilley, Chief Economist of Wilmington Trust for a new episode of our radio show and podcast In Process: Conversations about Business in the 21st Century. Tilley develops forecasts of the U.S. and international economies, as well as researches, emerging issues to support and enhance the firm's investment strategies.
We had a lot of questions for him such as what are companies investing in? Are things getting better? Or are we due for another recession? According to Tilley, “Things are getting better. It’s the third longest economic recovery in U.S. history.”
Business Capital Expenditures
A key discussion point was regarding business capital expenditures. According to Tilley, "We are expecting stronger capital expenditures in 2018...for the first time during this recovery, companies are really turning to investing in that new piece of equipment or that new software package or that more efficient office space." He noted that business confidence last year really picked up and it is expected to continue.
2018 Capital Markets Forecast
For our business and investor audience, Tilley shared details on Wilmington Trust’s new publication, the 2018 Capital Markets Forecast. It’s centered around three key themes that will be understandable for all investors. Theme one covers the U.S. economy , theme two covers inflation and growth, and lastly theme three covers valuations, yields and volatility.
According to the report, organic growth is expected to be 2.25% in 2018; fold in the partial impact of the tax reform and Wilmington Trust believes that it would add another 0.5% -0.75% of growth for the year from consumer spending and capital expenditures.
Click below for your copy of the new "2018 Capital Markets Report" by Wilmington Trust.
Listen to the podcast for the full discussion and to learn about:
- A quick recap of 2017 and what turned out to be the shock of the year
- The NEW 2018 Capital Markets Report (FREE Download, compliments of Wilmington Trust)
- An economist's perspective on Bitcoin
- Thoughts on consumer debt for 2018
Stream the conversation in its entirety in the player below, or download it to your mobile device via iTunes. Don’t miss a single episode, subscribe to our podcast show ‘In Process Podcast’ on iTunes to receive this episode as well as future episodes to your smartphone.
Relevant article 12.17.2017: Chief Economist Luke Tilley comments on the markets and tax reform, in a recent Bloomberg article. Click here to read.