Weekly Market Commentary 05/26/2017

With the absence of any further unsettling news out of Washington, the financial markets struck a positive note this week. That’s not to say that the Capitol was devoid of any developments. The administration released its $4.1 trillion budget for fiscal 2018, which contains a blueprint to wipe out the deficit by 2027 based on rosy assumptions for economic growth that most economists consider highly unrealistic. It invokes the Reagan-era supply side logic that massive tax cuts will pay for themselves by jump-starting the economy’s growth engine beyond its sustainable capacity to produce goods and services.