My friends Van Hoisington and Lacy Hunt of Hoisington Investment Management usually write only quarterly letters. They send interim updates only when something of major consequence happens. The fact they wrote this one is significant… and what they say is definitely important.

Van and Lacy are not optimistic that Trump-led tax cuts and infrastructure spending will stimulate the economy to any significant degree. They also remind us that the economy still bears an enormous debt load that will likely restrain growth for years to come. They also point out that the current mild expansion shows signs of exhaustion.

Read on to get their take on what's in store for the markets and the economy.