Stock indices hit session highs midday and tested a bit. The first 'analysis' of the tax plan, what there is of it, is that it favors the rich, favors businesses, and raises taxes on most taxpayers. Well, when half the people pay no income tax, when a bunch of incentives that should have never been in the tax code are removed, there will be repercussions, and as I noted earlier in the week, a lot of wailing and gnashing of teeth. That is, of course happening.
What do these analyses mean? Nothing. They do not take into account what removing all of this waste and tax nonsense will do for the economy and thus for the average person. As President Kennedy said, the best form of welfare is a well-paying job. One thing this country has not produced in a long time are a lot of well-paying jobs. The question is whether this proposal would ignite the investment needed to revive the entrepreneur creation spirit that creates new companies and new jobs. THAT is the real issue we need to be considering.
After this analysis, stocks are fading from the highs. We will see if the bids return. Thus far all indices but DJ30 are positive.
SP500 5.98, 0.24%
NASDAQ 36.52, 0.57%
DJ30 -25.32, -0.11%
SP400 0.22%
RUTX 0.19%
SOX 0.62%
We took some gain on some positions, picked up HIMX, and will see if ZUMZ and some others can hold decent moves.
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm
PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.
Customer Support: http://investmenthouse.com/contact_us.php
No comments:
Post a Comment