What the hell took the stock market so long to realize that Biden tax plan ? I thought the markets were discounting mechanisms
Now Biden’s Tax Proposals Appear On the Radar Screen Of the Market
#12
Posted 11 January 2021 - 11:06 AM
STATIC analysis says that if you make a million dollars selling a million apples for $1 each, then you will make a million million by raising the price $1,000,000 per apple.
But Corporations don't really pay taxes (customers do in pass-through higher prices)
Thus this may be a bit misleading:
S&P 500: tax hit (estimated S&P 500 earnings impact based on Biden’s proposals )
- Technology down 9.2%
- Health care down 8.4%
- Communication services down 8.2%
- Consumer discretionary down 7.5%
- Financials down 6.5%
The old adage is BS:Taxes are passed to customers as higher prices, but then, as with the last tax cut, corporations use the cut for buy backs and exec bonuses...they keep it. I haven't heard of any corporations passing the cut back to the customer. Instead, the customer inherits the resulting increase in fiscal deficet created by the cut.
#13
Posted 11 January 2021 - 01:50 PM
I see the market is preparing for a crisis in the near future as USD and gold both going up with VIX today ..........
Edited by redfoliage2, 11 January 2021 - 01:54 PM.
#14
Posted 11 January 2021 - 03:33 PM
#15
Posted 11 January 2021 - 04:09 PM
I see the market is preparing for a crisis in the near future as USD and gold both going up with VIX today ..........
Is this that has the market concerned?
https://www.reuters....e/idUSKBN29G0Q5
#16
Posted 13 January 2021 - 10:25 AM
As the ST support continuously to hold it looks to me that this is likely just a consolidation at highs. After it is done we should expect higher highs .....................
Edited by redfoliage2, 13 January 2021 - 10:34 AM.
#17
Posted 13 January 2021 - 11:54 AM
As the ST support continuously to hold it looks to me that this is likely just a consolidation at highs. After it is done we should expect higher highs .....................
Expect SPX in the range 3850 - 3880 by the end of the month ...................
Edited by redfoliage2, 13 January 2021 - 11:55 AM.
#18
Posted 13 January 2021 - 03:44 PM
BTW, This is an OpEx week I see the market is more likely to go higher tomorrow/Friday ...................
Edited by redfoliage2, 13 January 2021 - 03:45 PM.