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Millionaires Believe Washington Is the Biggest Threat to the U.S. Economy in 2019

Investments of all types depend on the performance of the U.S. economy. No one can see into the future, of course, but plenty of speculation exists about what is coming. For some, the fear that the economy is slowing is a big factor in realigning investment strategies and capitalizing on taxation.

A change is likely in 2019, most expect. Just on December 19, the U.S. Federal Reserve made it clear that it, too, believes the economy is slowing. Though Chairman Jerome H. Powell stated that the economy is still “solid” and “healthy” in his notes, he also noted there were signs it was softening. Though it still plans to increase its benchmark interest rates in 2019 and raised the rate by a quarter-point this month, it was clear to acknowledge a level of uncertainty exists.

What’s behind the risk? What could be causing the full-steam-ahead economy to begin to slow? Numerous possibilities exist.

Is Washington to Blame?

A survey conducted by CNBC puts the blame squarely on Washington and the policies there. The Millionaire Survey, which was conducted by Spectrem Group, showed that many believe the policies in Washington are a big risk. According to the survey, 37 percent of those millionaires responding reported that government dysfunction is their biggest threat to building personal wealth in the year to come. Another 32 percent blamed the stock market’s less-than-stellar recent performance.

It’s clear that political lines are drawn. The survey showed 41 percent of responding Republicans believe the economy will continue to grow in the coming year, while only 8 percent of Democrats responded favorably. And, that disparity in itself could be a key factor in Washington’s inability to work together. Political dysfunction, along with growing government debt, could be key concerns for the economy in the year to come, according to the report.

The survey provides a few other key factors. For example, about half of those polled believe the S&P 500 will be up 5 percent or more in 2019. A full 20 percent believe it will be flat. And, 37 percent expect to see returns between 4 and 5.9 percent over the next year.

Trade Wars Dragging On

Though President Donald J. Trump continues to make statements about the current state of affairs, it is clear that the ongoing trade wars with China will play a role in the strength of the U.S. economy in the coming year as well.

Another survey, this time conducted by the Wall Street Journal, showed that the trade war with China is the biggest concern for 2019. This survey, which polled economists in the U.S., found that 47.3 percent believe that the ongoing conflict with China is the biggest risk for 2019. The survey also found 20 percent of economists believe the financial market disruptions are a key factor. And, many stated that a slowdown in the economy was likely.

Finding a Conclusion: What’s to Come?

What does this mean for investors and those planning to build wealth in the coming year? It’s clear there is looming trouble ahead. Promises of a resolution, negotiations and even a truce have surfaced in the last few weeks in regards to the U.S.–China trade war, and expectations are there will be a lasting impact. Washington will see significant changes, as well, as new representatives are sworn into place in the new year. The only promise here is that individual investors will need to put more attention and care into their portfolio and tax-planning strategies to minimize any impact of a downturn in the economy as the year plays on. This could become a critical factor for many.

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Offices in Flemington, NJ and Califon, NJ

Our Mission: At Prestige Accounting Services Group (previously Prestige Wealth Accounting Group), we are on a mission to redefine the tax experience for individuals and small businesses. With a focus on personalized service, strategic planning, and expert guidance, we aim to empower our clients to succeed financially with confidence and ease.

Expertise in Action: With a wealth of experience and a team of dedicated professionals, we specialize in individual and small business tax preparation. While we excel in all areas of taxation, our passion lies in serving the unique needs of small business owners in New Jersey. We understand that small business taxation requires specialized knowledge and attention to detail, which is why we go above and beyond to ensure our clients receive the guidance and support they deserve.

Tailored Solutions for Every Client: Whether you're a high-net-worth individual seeking comprehensive tax planning or a small business owner in need of accounting and bookkeeping assistance, we have the expertise to meet your needs. Our team takes the time to understand your specific situation and develop customized solutions that align with your goals and objectives.

Why Choose Us?: What sets us apart from other New Jersey tax firms is our commitment to excellence and innovation in the field of taxation. We don't just prepare tax returns; we provide strategic insights, proactive planning, and actionable advice to help our clients achieve their financial goals. With a team of two CPAs, an EA, and an ERO, we have the expertise and resources to deliver exceptional service and results.

Your Success is Our Priority: At Prestige Accounting Services Group (previously Prestige Wealth Accounting Group), we measure our success by the success of our clients. We are dedicated to building long-lasting relationships, providing unparalleled service, and helping our clients thrive in today's ever-changing tax landscape.

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