As expected, the biggest news this week was the passage of the tax reform package in the United States. On Wednesday, the senate passed the sweeping tax reform package that makes big promises to corporations and individuals.

As soon as they passed the bill, companies started making promises. AT&T promised to pay a bonus of $1,000 to about 20,000 employees while Wells Fargo announced a bonus and an increase in hourly wages.

The bill is now waiting for Trump’s signature.

As you recall, the stock market has gained significantly this year on hopes of a tax cut and deregulation. Now, with the passage of the bill, and with all the deregulation efforts the administration has carried out, the question is; what will drive the stock market growth? Remember, investors always buy the rumors and sell on the news.

I believe the stock market could see a correction in the coming year. As rates rise, and with no major news on the horizon, the implications could be significant.

The chart below shows the impressive Bull Run that happened this year.

In other news, this week, the price of bitcoin and other cryptocurrencies dropped by about 25%. This happened following a series of bad news. First, the CME became the second big board to list bitcoin futures. But, the volume that was traded was insignificant as large funds started to explore how to benefit from the currencies.

Then, a large South Korean exchange filed for bankruptcy after being hacked by reportedly North Korean agents. As if that was not enough, U.S based coinbase started an internal insider trading investigation after bitcoin cash sharply increased minutes after launching.

All the negative headlines were not beneficial to the currency, which is highly volatile which saw a 25% decline. Traders bullish on the currencies however will have an opportunity to buy the dips.

In Europe, the Catalans went to regional elections. As you recall, the Catalan region has been calling for secession from the larger Spain region. Their win in the regional elections led to significant movements in the markets with the Euro falling sharply against the dollar. In addition, European futures markets fell as the Catalan situation presented new risks.