Vision 2017 Financial planners optimistic that regulations will be eased, profits will grow

Feb. 25--Local financial advisers say 2017 offers opportunities for businesses, workers and investors.

President Donald Trump's opposition to the Dodd-Frank Act, his commitment to jobs and tax reform could mean better days ahead, those in the local financial industry say.

Bill Rice, owner of Laurel Highlands Financial Services, in Somerset, is among the optimists.

"When you have government deregulation, a pro-growth stance politically and an environment in which taxes will go down -- all three mean more jobs, and the whole economic ball starts to roll, he said.

A recent InvestmentNews Outlook survey shows that about 70 percent of financial advisers expect the nation's economy to significantly or slightly improve in 2017.

Only about 45 percent of advisers were this optimistic going into 2016.

"When I hear my taxes are going to be reduced and regulation is going to be repealed or reduced, that makes me smile," Rice said.

The Dodd-Frank Act of 2010 was legislation passed as a response to the financial crisis of 2008.

Proponents say it has empowered regulators with tools to prevent another fiscal meltdown. Critics argue the bill has cost jobs.

Dan Berger, president and CEO of the National Association of Federally-Insured Credit Unions, said since the law passed, his industry has suffered a loss of some 1,250 federally insured credit unions, according to Loanlogics.com.

"It's handcuffed banks for years," Rice said.

Taxes and regulations

Samuel G. Carpenter, co-owner of Carpenter Financial Services of Johnstown, is hoping proposed cuts in corporate taxes will spill over to small business.

"It's not in writing," he said. "If (Trump) reduces the income bracket for small business owners, that would be great."

Rice added: "As a small businessman, that puts more money into my pocket to expand my business and give raises."

Michael Lynch, senior vice president and chief investment officer for AmeriServ Financial Inc., said Trump's commitment to building roads and bridges will boost the economy.

"Businesses will have job openings, and the economy improves," he said.

Carpenter agreed, saying Pennsylvania's infrastructure needs a boost.

"Any money directed in that area would be well-spent money," he said.

Michael Boyer, owner of Boyer Financial Planning in Somerset, said businesses will benefit with an uptick in interest rates.

The U.S. can expect three-quarter-point increases in 2017, according to www.ft.com.

That could help companies that do the majority of their business in the United States, as local products become more attractive, according to a CNBC report.

"Rising interest rates could fuel the earnings outlook for companies," Boyer said.

"Those are the things we look for when evaluating investment choices."

Investing to earn

What should investors look for?

Advisers say they never generalize.

Douglas Puchko, president of Puchko Financial Associates Inc., Johnstown, said investors would do well to seek professional advice.

"People think they know how money works," he said. "If it worked the way they thought, they'd be rich.

"The way we work with our (customers), we don't only help them pick winners but avoid the losses."

Lynch said some investors prefer liquid assets -- savings, bank accounts -- that can be moved quickly and easily.

"When the market turns, they can take that money and put it into more long-term investments," he said.

Carpenter sees many people under-invested in low-yield accounts.

History bolsters the claim. From 1950 to 2009, the average annual return came out to 7 percent.

Today, Carpenter said, "too much money is earning 1 percent."

He quotes Peter Lynch, renowned Fidelity money manager, who said of investing in stocks: "Don't get scared out of them."

Patrick Buchnowski is a reporter for The Tribune-Democrat. He can be reached at 532-5061. Follow him on Twitter @PatBuchnowskiTD.

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