Have The Markets Decided to Ignore Proposed Tax Plans?
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- MakeMe$$$$
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Have The Markets Decided to Ignore Proposed Tax Plans?
I don't know but this could be as good an explanation as any on why the markets are running strong in spite of the current political climate.
http://money.cnn.com/2017/07/21/investing/wall-street-donald-trump-tax-reform-stocks/index.html
http://money.cnn.com/2017/07/21/investing/wall-street-donald-trump-tax-reform-stocks/index.html
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
I think they have decided to ignore this President.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
Ahhh something from CNN slanted negative against the current administration.... shocking.... . I'm oh so ever shocked.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
- MakeMe$$$$
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
mmmmmbeer wrote:Ahhh something from CNN slanted negative against the current administration.... shocking.... . I'm oh so ever shocked.
Slanted or not, there has been ample discussion on my outlets on what would happen if tax reform got derailed. Everyone seems to see the Trump Bump as the markets welcoming his position on tax reform. Many have proclaimed an imminent correction without tax reform.
I don't see it as a negative Trump commentary per se, simply an observation on why the implosion hasn't occurred.
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
- MakeMe$$$$
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
ArrieS wrote:I think they have decided to ignore this President.
Or could it be that the market is stronger than we thought? That doesn't mean it is invulnerable to many factors but perhaps it is more resilient in light of some of the gains in the world wide markets.
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
MakeMe$$$$ wrote:ArrieS wrote:I think they have decided to ignore this President.
Or could it be that the market is stronger than we thought? That doesn't mean it is invulnerable to many factors but perhaps it is more resilient in light of some of the gains in the world wide markets.
There is no need to start your sentence with an or. They are not mutually exclusive concepts.
OCTOBER: This is one of the peculiarly dangerous months to speculate in stocks in. The others are July, January, September, April, November, May, March, June, December, August, and February. - Pudd'nhead Wilson's Calendar
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
MakeMe$$$$ wrote:mmmmmbeer wrote:Ahhh something from CNN slanted negative against the current administration.... shocking.... . I'm oh so ever shocked.
Slanted or not, there has been ample discussion on my outlets on what would happen if tax reform got derailed. Everyone seems to see the Trump Bump as the markets welcoming his position on tax reform. Many have proclaimed an imminent correction without tax reform.
I don't see it as a negative Trump commentary per se, simply an observation on why the implosion hasn't occurred.
Of course the markets would welcome that tax reform. Look at this thing:
Single $0-$37,500 Joint $0 - $75,000 = Current 10 - 15% Trump 12%
Single $37,500 - $112,500 Joint $75,000 - $225,000 = Current 25 - 28% Trump 25%
Single $112,500+ Joint $225,000+ = Current 28 - 39.6% Trump 20%
Heck I'm all for it. Big tax cut for the mmmmmbeers.
The market being at an all time high is primed for a correction regardless of the reform plan. Can't keep skyrocketing forever no matter how much we all wish for it.
Yup we're all partying like its the roaring 20's right now with these huge yearly gains.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
Interesting but are they not talking along the lines of reducing tax here but adding there to keep a balanced budget? There was talk of eliminating state and local income tax deduction.
- MakeMe$$$$
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
I didn't start this thread for the purpose of debating tax policy. It was to talk about how we have been reacting to tax policy promises (Trump bump) and how the market might react if they didn't get implemented. In short, the market rose on the expectation of tax reform but hasn't yet buckled to lack of reform.
That doesn't mean the markets won't correct at some point simply because of how heated it has gotten but there were many predictions it would have started to falter by now. However, I think the economy is in better shape then some want to admit and foreign markets are also doing better than expected.
But, since tax policy has become a sidebar discussion...
I don't think the market makers care that much about individual tax reform. Oh, sure, there is a fair argument that it would help if individual income tax reform can put more money in family pockets and thus increase consumer spending. Still, corporations are more concerned about their own profits than your tax relief.
The GOP's goal of lowering corporate taxes is much more important to them than our taxes. The recycling of supply side economics is at hand. Simply look at the WH budget analysis to see that.
Let's not find ourselves deluded that reduction of federal taxes, both personal and corporate, won't introduce the need for states and locals to consider ways to make up for the revenue they will surely loose but that is another tangent to the thread.
That doesn't mean the markets won't correct at some point simply because of how heated it has gotten but there were many predictions it would have started to falter by now. However, I think the economy is in better shape then some want to admit and foreign markets are also doing better than expected.
But, since tax policy has become a sidebar discussion...
I don't think the market makers care that much about individual tax reform. Oh, sure, there is a fair argument that it would help if individual income tax reform can put more money in family pockets and thus increase consumer spending. Still, corporations are more concerned about their own profits than your tax relief.
The GOP's goal of lowering corporate taxes is much more important to them than our taxes. The recycling of supply side economics is at hand. Simply look at the WH budget analysis to see that.
Let's not find ourselves deluded that reduction of federal taxes, both personal and corporate, won't introduce the need for states and locals to consider ways to make up for the revenue they will surely loose but that is another tangent to the thread.
Don
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Rolled over to Fidelity 2/24/18.
Fantasy still playing with Daily Strategy 12767.
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
I think we're asking the wrong question. Markets haven't been rising because of the Trump Bump (it might've had a little bit of an influence, but even these types of influences have rather short and insignificant impacts on mid-long range outlooks, think Brexit..), they've been rising because earning reports from numerous companies in the market have been good over the last 6 months. So to answer your questions, yes the market is ignoring the proposed tax plans and rather following decent earning reports (as they typically always do in the long run).
I follow a monthly seasonal strategy from gclapper (slightly modified). Its moves can be found by searching for strategy number #25727 on http://www.tspcalc.com
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
The markets have become immune to Trump.
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
I think you're right.
Re: Have The Markets Decided to Ignore Proposed Tax Plans?
mmmmmbeer wrote:Ahhh something from CNN slanted negative against the current administration.... shocking.... . I'm oh so ever shocked.
LOL.
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Re: Have The Markets Decided to Ignore Proposed Tax Plans?
Correlation does not necessarily mean causation.
The correlation of a rising market and Trump election doesn't mean Trump caused it even if the CNBC talking heads said so.
Every investing book I've read says to ignore the news from Wall Street because even if it is correct, it's late.
The correlation of a rising market and Trump election doesn't mean Trump caused it even if the CNBC talking heads said so.
Every investing book I've read says to ignore the news from Wall Street because even if it is correct, it's late.
mo meng, mo ching (which loosely means: no money, no life)
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