So why would the US reduce tax when their deficit is far more...

So why would the US reduce tax when their deficit is far more concerning than Australia's?

Answer - It will simply drive GDP growth through investment and consumer spending, which will offset any reduction in government spending.

To remain competitive, I anticipate Australia will need to do the same.

In the meantime there will be tailwinds from a stronger USD that will be beneficial for our miners and many other other sectors. And higher USD interest rates will be a modest tailwind for our banks.

There is far less risk to our economy and global economies than there was 6-12 months ago. This should all bode well for a strong 2018 on our market.