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Registered Investment Adviser Caleb Lawrence

Another volatile day on the street sends the major averages into the final hour with small gains on generally disappointing data. Existing home sales missed expectations in April falling 2.3% to 5.57 million units annualized, declines were noted in all regions except the Midwest. Month’s supply increased to 4.2 while the median price advanced 3.5% to $244,800 a figure 6% higher than a year ago.

The Trump budget outline promises a balanced budget in 10-years, a huge increase in military and security spending at the expense of social welfare spending particularly for those most disadvantaged and sharp reductions in environmental spending as well amongst other cuts. Other items of note the plan assumes 3% economic growth, something that has only happened twice in the last 15 years. Some 2 trillion dollars in new “magic” money, because nobody know where it is going to come from. A down payment on the Mexican border wall. Reduced tax rates for corporations and the upper income brackets. More or less standard Republican fare, floating the idea is one thing, getting it to see the light of day, all together another. Given demographics and the extent that debt both public and private and related service costs have crowded out investment in the new millennia 3% economic growth on a consistent basis will require a near miracle going forward.

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