Trump Tax Bill :: Investors Pull Billions From The Markets

a reply to: Imhere
yea I noticed. They sure move fast.

didn`t the new tax reform significantly decrease the capitol gains tax? that might have something to do with it.

originally posted by: carewemust
a reply to: jtma508

Investors bail, yet stocks contiue to increase in value. Wow.

Is Trump's America awesome, or what!

Your mad in the head with that.

originally posted by: Throes
I'm getting over $3k back next year. Slashed my tax bill from $12k to under $9k.

But please tell me how that's peanuts and cry some more.

If you're making that type of money that you're paying that much in taxes, then you're not the group that needs help.

I'll make out decently from this bill, but it's still a pittance and money I don't need or deserve.

More importantly, it means services that people need that were already under funded will now be funded even less so. From the obvious ones like roads, to healthcare, to the electric grid.

originally posted by: Xtrozero
You don't think a reduction in tax would allow a moms and pops place to expand in anyway?

Taxes aren't punitive to corporations. They price the tax into the cost of their product. Lowering taxes lowers the price of goods as everyone is competing to have the best prices. The end result is margins shrink while volume increases, and revenue remains the same.

a reply to: Aazadan
Roads are built and repaired with gas and property taxes. The electrical grid is privately managed and funded. Healthcare is finally back to what we had for decades before Obama told the IRS to put a gun to everyones head and demanded payment for existing. Try again?

a reply to: worldstarcountry

Gas surcharges haven't changed in decades because it's a very unpopular tax, it's resulted in inadequate highway funding, that was being supplemented through other taxes.

The electric grid is built with public money.

Health care prior to the ACA (which isn't what we're going back to) isn't exactly a point in favor of your argument because medical expenses were bankrupting everyone, if they could afford a doctor in the first place.

a reply to: Aazadan
Thats the cost of freedom baby. living is risky bussines, more so when people deliberately destroy their bodies be cause things just taste good

The roads in my state are just fine, so I guess gas taxes is adequate here.

I am amazed how many people simply don't understand the stock market...

Stocks are investments. When one invests, they expect to receive a profit. If they invest and never get the profit out, they haven't seen anything but a money pit. What this means is that many investors are cashing in on the record stock values that we have been seeing.

Now, what, I wonder, are they going to do with all that money? Well, some is going to Christmas celebrations, I would wager.

According to Bank of America Merrill Lynch, redemptions from equities funds and ETFs totaled $14.5 billion, the fourth largest on record, and the biggest since August, 2014, just weeks after Brexit.

Sou rce

Equities are typically a part of retirement accounts. Oh, how DARE those rich little old ladies living on a fixed income expect their profit from investments!

Secondly, notice the prices haven't dropped much despite the cashing out. That means that it's actually a little lucky for the stock market that the money was cashed out, or we'd be looking at over 30,000 for a DJIA! That's how the market works... as the prices go up, more people sell reducing the prices. As the prices drop, more people buy, slowing the decline.

Thirdly, not all investment is in the stock market. Large sums drawn out can also mean multiple entrepreneurs are anticipating start-ups. Someone actually funds businesses leading up to their IPO. That means that the market will likely actually broaden in the near future.

Fourthly, notice how the cash flow into the stock market is still positive?

Fifthly, notice how low cash flows from bonds have become? That's because bonds are low-risk, low-reward, typically favored for times when stocks or new enterprises are too risky. Except for a single year-end blip, the market flows are exactly what one would see when a stagnant, struggling economy transforms itself into a vibrant, growing one.



I certainly will not be looking to CNBC or MSN for financial advice after reading this. Thank you OP, for letting me know who not to listen to.

TheRedneck