Kesley Grammer just said he got out of the market in July FEARING an Obama presidency since he wants to RAISE the capital gains tax…
Nah. Presidential politics does almost nothing to stock markets.
but future fiscal policies do
I think Grammer has a point here.
Capital gains tax increases should affect the markets, since it will alter strategic asset allocations somewhat, and presumably raise the value of dividend-paying stocks too. However, I think that would bake in slowly, and probably not much until legislation was actually proposed and looked likely to pass. However, it’s very hard to predict exactly how the legislation would look, whether it would pass, etc… I suspect an Obama win might actually make markets calm down and possibly improve slightly. Obama at least comes across as economically knowledgeable. All I hear from McCain is that he’ll fight for me and eliminate some earmarks so we don’t have to change the tax code. I keep hearing from McPalin that they’re the “team of mavericks” that are going to shake things up. That’s different from a program of “structured change” designed to address what’s been going wrong for at least the last eight years. “Maverick” sounds too much like a bucking bronco, a loose cannon. You never know if he’s going to take on his party or take on the democrats, or reach across the aisle. Contrast that to a statement of what the underlying principles of change is, and I think markets may find that more predictable, and therefore become (a little) less volatile.
Date DOW CAGR Jan-81 950 Jan-89 2,325 12% Jan-93 3,310 9% Jan-01 10,700 16% Today 8,580 -3% 10/1/1980 940 10/1/1988 2105.26 11% 10/1/1992 3250 11% 10/1/2000 10700 16% Today 8,580 -3%
yeah, the Dow is tanking because Obama may become President. It’s got nothing to do with collpasing property markets, failing banks or dead credit markets. Jeez guys, excercise your brains now and then…
PtrainerNY Wrote: ------------------------------------------------------- > Kesley Grammer just said he got out of the market > in July FEARING an Obama presidency since he wants > to RAISE the capital gains tax… B.S.
I don’t think anyone will need to be worrying about capital gains for awhile. So no, the premise of this thread is certainly incorrect.
You have to have gains to be taxed at capital gains rates. Not much of those around lately.
JoeyDVivre Wrote: ------------------------------------------------------- > Nah. Presidential politics does almost nothing to > stock markets. True, technical indicators are hogwash. 
Capital gains tax??? They need to increase the annual deduction limit for losses.
I guess so… I mean, if that’s what Kelsey Grammer says; it must be true. I think I heard Karl Rove say the same thing, another financial expert. The fact is that the republican agenda caused this mess with their “let big business and the financial markets go freaking crazy for 8 straight years” mentality.
Yes, Blame Clinton for the recessions and Obama for the depression.