With 2018 right around the corner many investors new years resolution will no doubt me to make better decisions. At this time anyone trying to make a career out of investing is seriously looking for the best place to invest. According to a recent article written by Jeff Yastine mergers and acquisitions are probably the safest bet for investing.
Jeff Yastine is a proven stock market investor with more than 20 years of experience under his belt. The investment wizard is also a reputable financial journalist and editor of Banyan Hill Publishing popular newsletter Total Wealth Insider. He began working at the publishing company in 2015 as editorial director.
Investing in mergers and acquisitions could have a huge payoff. For example, the Disney/ Twenty First Century tie up was reportedly worth more than $50 billion. Yastine believes this proposed deal was only the beginning of an upcoming trend.
What’s the reason for this trend? There are a few different components to say the least. With a new tax reform becoming more and more likely it’s very predictable that billions of corporate cash will be freed up in 2018 as the corporate tax rate drops to 21 percent.
The consumer, as always, also plays a role. Americans are consuming products at a rate not seen since the country was just emerging form the recession in 2009.
And finally, the most significant component is corporate sentiment. While outsiders look at CEO’s and their boards as closer to automatons than people they are indeed human with ups and downs. These spells of optimism and pessimism can have major impact on on a company’s decisions.
Jeff Yastine strongly believes 2018 will be the year of mergers and acquisitions and he is not alone. Many executives at large corporations and private equity firms agree. Some have even elaborated further stating that as their cash reserves increased they want to use the excess for mergers and acquisitions deals. Roughly 40 percent of companies are making M & A opportunities their main focus.
Investors can turn a profit at low risk by betting on individual stocks through an exchange-traded fund.