10 Predictions that Could Start Happening in 2017
Most of our predictions rely on just a couple of factors. First, we believe that the corporate tax rates and the dividend tax rates in the United States will be fixed, ending the near double taxation policy.
We also expect for the oil price to improve slightly as many of the independent oil companies are not able to sustain their oil production due to high levels of debt.
1. For the first time since 1967, Warren Buffet will declare a dividend for Berkshire Hathaway.
2. The U.S. federal government will have a deficit that is less than $250 billion in 2017 and will be close to a surplus by 2020.
3. U.S. dividend paying stocks, especially companies with strong earnings, but previously low yielding dividends will rise in value. Bonds yields will increase slightly to compete with a strong stock market.
4. The price of oil will increase to $55+ in U.S. dollars, but the increase will be felt much more when priced in Canadian dollars.
5. Most of the debt ridden independent Canadian oil companies will slowly decline in value.
6. A few new oil companies with limited debt and a high credit facility will dominate the oil sector in Canada.
7. Cutting the cord continues. By the end of the decade, cable is 100% streamed online. One by one, the subpar television stations stop operating.
8. Housing construction will slow down slightly, but new federal construction projects will make 2017 a better year than 2016 for the construction industry in most provinces.
9. The Keystone XL pipeline will be approved.
10. TransCanada will decrease Energy East's proposed pipeline flow capacity.