The extra cash flow companies will see from the Tax Cuts and Jobs Act will affect valuation depending on how the funds will be used. Some reports said companies would use the windfall for capital investment in both core and new businesses as well as R&D. But the escalating trade war may change that. A report from Reuters says that the trade war between the United States and China may prompt U.S. companies to shift money they had earmarked for capital expenditures into stock buybacks instead, pushing record levels of corporate share repurchases even higher.