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Q4 GDP gets announced on Friday 1/27. The current GDP Now estimate stands at +2.8% while the Blue Chip Consensus of economists stands at +2.2%. Truly anywhere in that range is a nice step up from the 1.5 to 2% pace of the last couple years.
That is the growth in hand, which is a nice starting point for the new administration. Most economic policies discussed to date would only add to the growth prospects such as lower taxes, less regulation and increased infrastructure spending. With that higher growth would come higher earnings and likely higher share prices.
So what is there to worry about?
Trouble could come in 2 forms. First, would be growth that was too strong that sparked inflation and higher interest rates. Historically these have been the precursors to most recessions and bear markets.
Second, would be trade wars with major trade partners (Mexico, Canada, Europe or China). Even if new and positive trade policies get established in the end, any flare ups in the interim would be a "sell first, ask questions" later environment for the stock market.
Investors should keep a bullish posture given the predominance of positives in this environment, yet keep a watchful eye of any trouble emerging on the inflation or trade fronts.
Best,
Steve Reitmeister
Executive Vice President, Zacks Investment Research
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Q4 GDP gets announced on Friday 1/27. The current GDP Now estimate stands at +2.8% while the Blue Chip Consensus of economists stands at +2.2%. Truly anywhere in that range is a nice step up from the 1.5 to 2% pace of the last couple years. 
