--- title: Nuveen Believes the Political Backdrop Can Support Growth description: How tax reform, the failure of the GOP health care plan and other factors will affect economic growth and stock performance in the medium to long-term. image: http://www.letsassemble.com/hubfs/blog-files/Nuveen_Commentary.png --- [![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/) The Money Manager People TM [800-541-7774](tel:+18005417774) [![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5) [![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2) [Home](https://www.letsassemble.com/) WrapManager's Wealth Management Blog When life changes, we can help you thoughtfully respond. [< Back to read another post](https://www.letsassemble.com/wealth-management-blog) # Nuveen Believes the Political Backdrop Can Support Growth Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee) April 12, 2017 - [Tweet](https://twitter.com/share) [![Nuveen_Commentary.png](http://www.letsassemble.com/hs-fs/hubfs/blog-files/Nuveen_Commentary.png?width=427&name=Nuveen_Commentary.png)](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Nuveen-Political-Backdrop-Can-Support-Growth-Apr-2017.pdf) ## *Economic Growth, Not Politics, Is Probably the Biggest Risk* For some time, we have argued that equities and other risk assets looked overextended following their strong run-up since the election. In recent weeks, equities have been trading sideways and government bond prices have recovered. More than politics, the economy probably presents a more probable roadblock for equities. We think economic sentiment may be too high and elevated confidence may make investors vulnerable to downside economic surprises. To be sure, we are not expecting a significant economic slowdown, but the nearly non-stop pace of positive economic data is unlikely to continue. At some point, a setback will likely be triggered by a manufacturing decline, soft oil prices, weakening data from China or some other factor, which could spark a risk-off phase. Nevertheless, we remain constructive in the medium and long-term toward risk assets, but are growing increasingly cautious about the short-term outlook. Read an excerpt of the complete commentary below, or [download the entire investment commentary as a PDF](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Nuveen-Political-Backdrop-Can-Support-Growth-Apr-2017.pdf). [![Learn More About Nuveen Asset Management](https://no-cache.hubspot.com/cta/default/10700/da50c6cb-931f-424d-b42c-718456bf3b6e.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/da50c6cb-931f-424d-b42c-718456bf3b6e) ## Key Points: - Stock prices bounced back last week, thanks in part to the strongest consumer confidence level in nearly 17 years. - Investors are focused on political risks, but we think potential for a near-term economic disappointment is a bigger issue. - In any case, we remain constructive toward equities and other risk assets over the medium and long-term. **Tax reform is key to the pro-growth Trump agenda.** When investors refer to the president’s pro-growth agenda, they generally mean regulatory reform, infrastructure spending and tax reform. President Trump has already enacted regulatory changes through executive orders. And we think a major infrastructure package is a low probability at this point. That means tax reform (especially corporate tax reform) will probably be the biggest political economic driver. **Failure of the GOP health care plan makes tax reform more difficult.** A major component of the American Health Care Act was a $1 trillion repeal of taxes that were enacted as part of the Affordable Care Act and a corresponding set of cuts to Medicaid. Without that baseline reduction, policymakers will be forced to find other revenue offsets, making tax reform more difficult. [Download Nuveen Asset Management's latest commentary](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Nuveen-Political-Backdrop-Can-Support-Growth-Apr-2017.pdf), or read their previous week's commentary [Equities Sag as Political Optomism Returns to Earth](http://www.wrapmanager.com/wealth-management-blog/nuveen-equities-sag-as-political-optimism-returns-to-earth). To learn more about [Nuveen Asset Management](http://www.wrapmanager.com/money-manager-research/nuveen_asset_management) and other Money Managers, give us a call at [1-800-541-7774](http://www.wrapmanager.com/wealth-management-blog/wells-fargo-advisors-lack-of-dovish-action-leaves-investors-cold/tel:+18005417774) or [contact us here](https://www.wrapmanager.com/contact) to speak with one of WrapManager's Wealth Managers. **[![PDF Download](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359955-gif/blog-files/pdficon.gif)](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Nuveen-Weekly-Commentary-Dec-2016.pdf) **** **[**Download Nuveen Asset Management's Full Commentary**](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/Nuveen-Political-Backdrop-Can-Support-Growth-Apr-2017.pdf) ![Research Money Managers](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359965-gif)  **[Get Free Research Reports on Nuveen Asset Management](https://www.letsassemble.com/money-manager-research/nuveen_asset_management)**   [Economic/Market Outlook](https://www.letsassemble.com/wealth-management-blog/topic/economicmarket-outlook) [Nuveen Asset Management](https://www.letsassemble.com/wealth-management-blog/topic/nuveen-asset-management) [Money Manager Commentary](https://www.letsassemble.com/wealth-management-blog/topic/money-manager-commentary) [![get money manager picks](https://no-cache.hubspot.com/cta/default/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3) ### Subscribe to Updates [Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf) ### Most Recently Published ### Blog Authors [![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [**Valerie De Vol, **IACCP® Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [**Seton McAndrews, **CFP® ](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA® ](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) ![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png") [**Katie O'Connor **Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor) **Important Disclosure Concerning WrapManager Blogs** Blogs found at this site have been created or supported by WrapManager. 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