When two events happen at the same time, there is a strong psychological basis for connecting them.
Today is such a day. The end of the election and Obama victory is somehow getting linked to the stock market. We discuss this, and future investment opportunities, at our sister site, ElectionStocks.com. Please check it out for a more detailed analysis. This will be the source for future stock-specific recommendations as we analylze the emerging Obama plan.
The key issues are still ahead of us. Our read is that Obama is constrained by the economic environment. We are very interested in his first decisions. These will include the following:
- How to handle the funds approved for the "rescue plan." Our hope is that there will be continuing attention to establishing accurate pricing for distressed assets, not just investments in private companies.
- The approach to fiscal stimulus. There is widespread agreement on the need. The implementation is open to debate. Will something emerge from a lame-duck Congress, or will Democrats wait for the new term to get a package they like. The trade off is delay versus a plan they really want.
- The attitude toward taxation. An Obama administration is expected to increase taxes in a way that will affect capital gains and, perhaps, dividends. We will be watching closely to see how Obama, as a President-Elect, views these issues. Our forecast (based on better insight than most) is that many proposed tax increases will be deferred, perhaps for two years until the expiration of the Bush tax cuts.
Investment Notes
Somewhat to our suprise, the TCA-ETF model has already indicated some sector buy signals and more are imminent. The climate is more positive, perhaps validating the signal from our Gong model.
While the Democrats sing Happy Days are Here Again, we have no such illusions. There are continuing issues. We will closely monitor the plans for dealing with the acknowledged housing and credit problems.
This article has 6 comments:
Eliminate Aid For Dependent Corporations (AFDC). Eliminate tax credits for corporations that export jobs. Eliminate tax credits for corporations that locate to a particular location or city. Eliminate tax credits for corporations period.
Revoke the notion and laws that support the idea of juristic persons to thereby eliminate the one dollar one vote mess we are in.
Limit executive pay to no more than 40 times their highest paid blue collar salary. No exceptions.
Impose luxury taxes on vehicles, private aircraft, yachts, and other consumer goods deemed "luxury goods". Say 300% to start.
You want to look and act like you're rich? You're going to need to be!
Then again, Obama wouldn't be President Elect if he held these views. Or, if he were - the Extremist-Capitalist elites would do the same thing to him they did to Jack Kennedy.
Seems as though the author's minders are anxious to assert the "Company Line"!
A 300% tax on "luxury goods" would really amount to making them illegal. This was tried in the 90's and it put so many people out of work that it was eventually repealed.
Communism doesn't work because there's no money in it.
There is a deep pool of hatred and suspicion out there, created by the Republican aparatchik and its front men. To believe McCain, you'd have to believe that Obama is a muslim terrorist who never dud anything good in his life and whose sole abition is to ruin America.
And though McCain's brief concession speech contained a few words contrary to the lies he has told about Obama for months, it was like giving a bandaid to the guy whose leg you just cut off.
McCain and the Republican zealots have set the stage to make Obama's work as difficult as possible. Helluva way to run a country.
I don't like to see it, yet the only solution to reducing the National Debt would be a National Sales Tax or Value Added Tax. All other method are only a
band aid. Wealth has become so disproportionate it may need a tax on its own, for I can show you how to make a Billion in wealth tax free, and withdraw only a taxable amount which I intent to spend. With a $150,000 I can live quite comfortable and take my annual world cruise.
dd
On Nov 05 08:48 AM Crank Monkey wrote:
> Very few people make over $250,000 and they pay the lion's share
> of the taxes already. Making them pay even more if a losing proposition.
A more realistic fed income tax would look like this.
You make 100k or less - no fed income tax
You make 100k to 250k - 33% fed income tax
You make 250k to 1m - 50% fed income tax
You make 1m to 10m - 66% fed income tax
You make 10m + 88% fed income tax
Very easy, very equitable. Those who benefit the most from the opportunities they receive for living in America pay their fair share.