Posted By RichC on April 26, 2017
What a start to the week for the stock market! There is optimism that something "will" get done with taxes, unlike #RepealAndReplace legislation. The news is that President Donald Trump will be unveiling his proposal to cut corporate taxes on US companies’ foreign profits and slash the top tax rate has investors in the "buy" mode. Some of us are still skeptical after the last go-around over health care, but tax cuts likely could generate enough congressional votes to pass … especially if their constituents back home have more money in their paychecks (or have a paycheck) and growing investments in their 401Ks and IRAs.
Today (Wednesday) is the scheduled speech from the president and likely will have something in it for everyone … except where the money to run the government will come from? For now, if you hold stocks, likely you are feeling a bit richer … but as a few well known investors are warning, it is starting to feel a little bit like the late 1990s … so be careful. Protection is hard to do if you are hoping to participate in a climbing market and don’t want to be left out. Unlike the past decade, sitting on cash could start to get costly IF we see inflationary signs?