Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There is no doubt that the stock market will drop, given that higher corporate taxes means companies keep less of their earnings - and thus are less valuable...
It's not that simple. We can expect some selling in December as some well-heeled investors will want to lock in gains at the current low tax rates. On the other hand, if Biden wins and the Dems win both houses, the market will gladly trade an increase in corporate taxes from 21% to 28% in exchange for a multi-trillion Covid stimulus bill. And, assuming we have Biden with a Democratic Senate, we will finally get some infrastructure spending. That's bullish.
As someone who has worked in investment and wealth management for a long time, why do you think there will be a meaningful impact on the market?
Because we would be moving from a pro-business president who made companies more valuable by allowing them to keep more of their earnings to a president who would increase the corporate tax rate by 25% (from 21% to 28%).p
It's not that simple. We can expect some selling in December as some well-heeled investors will want to lock in gains at the current low tax rates. On the other hand, if Biden wins and the Dems win both houses, the market will gladly trade an increase in corporate taxes from 21% to 28% in exchange for a multi-trillion Covid stimulus bill. And, assuming we have Biden with a Democratic Senate, we will finally get some infrastructure spending. That's bullish.
But a multi-trillion COVID bill isn’t just “free” money - it’s borrowed money. Sooner or later, it will be time to lay the piper, and inflation will take off. Inflation is a killer for retirees.
But a multi-trillion COVID bill isn’t just “free” money - it’s borrowed money. Sooner or later, it will be time to lay the piper, and inflation will take off. Inflation is a killer for retirees.
But a multi-trillion COVID bill isn’t just “free” money - it’s borrowed money. Sooner or later, it will be time to lay the piper, and inflation will take off. Inflation is a killer for retirees.
CBO's analysis of Trump's tax cuts - $1.9 trillion expansion in the deficit. That is borrowed money. What is the difference other than the political party?
There is no doubt that the stock market will drop, given that higher corporate taxes means companies keep less of their earnings - and thus are less valuable. With this in mind, I have:
1) Moved half of my retirement accounts to cash or cash equivalents. I spent 40 years building it up, and with no pension (not a government worker), I depend on that money to live.
2) I manage my elderly mother’s money as well, and she and Dad (RIP, Dad) lived beneath their means for the 65 years of their marriage so they could support themselves in old age. I thus have the vast majority of my mother’s money in cash or cash equivalents as well.
If Trump wins, I will miss a relief rally, but that is preferable to losing a significant amount of retirement money.
(Mods: if you think this should be in investing, feel free to move it.)
The stock market is likely already pricing in a Biden win. I don't see a huge drop coming. The only thing that will impact the market greatly is how bad COVID gets this winter. A Biden win may actually help stabilize the market as Biden's actions and messaging will likely be more coherent and less chaotic. Wall Street doesn't like uncertainty, and Donald Trump is the king of uncertainty.
Either way, I am staying the course. I still have 30 years before retirement and administrations come and go and have little impact on the markets over the long run. If there is a dip, it is a buying opportunity.
I don't see a huge drop coming. The only thing that will impact the market greatly is how bad COVID gets this winter. A Biden win may actually help stabilize the market as Biden's actions and messaging will likely be more coherent and less chaotic. Wall Street doesn't like uncertainty, and Donald Trump is the king of uncertainty.
This.
I do have a bottle of sparkling wine I'm hoping to open and a bright, new American flag waiting to signal an era of hope and unity.
Since this chat has turned into a financial one over the typical get ready and keep your powder dry worse case scenario, I am holding on to some money that I had planned on putting into the market until after the election.
Given what we have seen from the Trump admin. that is pro business, pro growth V. Biden and his plans to tax it all to pay for the pet projects of the Left such as giving Free health insurance to illegal aliens no wonder the stock market and big business is facing uncertainty.
Elizabeth Warren that may be tapped by Biden for a cabinet post has stated that she wants to dismantle the big corporations. That should send enough fear into the markets to make everyone involved vote for Trump.
I am holding on to some money that I had planned on putting into the market until after the election.
Biden and his plans to tax it all to pay for the pet projects of the Left such as giving Free health insurance to illegal aliens no wonder the stock market and big business is facing uncertainty.
I switched everything to cash last week... and avoided the big sell off losses that are happening this week.
Will re-evaluate after the election.
Voting Trump because who wants to pay for free health care for illegals?
Because we would be moving from a pro-business president who made companies more valuable by allowing them to keep more of their earnings to a president who would increase the corporate tax rate by 25% (from 21% to 28%).p
Why do you think Trump's policies are pro-business? His policies have added a significant amount of uncertainty and volatility to the market. I personally know many portfolio managers who are having a very difficult time with that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
