Capital gains tax hike? Why the stock market bounced back so fast

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Number crunchers were quick to point out an important fact about changes in the capital-gains tax rate: history shows they don’t have much, if any, effect on stock-market returns.

Blink and you might have missed the stock-market selloff blamed on the White House’s purported plans to hike the capital-gains tax rate on America’s wealthiest investors.

Cue the number crunchers, who were quick to point out an important fact about changes in the capital-gains tax rate: history shows they don’t have much, if any, effect on stock-market returns. “Well, on the surface you’d think higher taxes wouldn’t be a good thing, but that’s actually not reality,” Detrick said, in a note. “In fact, the past two times we had an increase in the capital-gains tax stocks did really well for the next six months in 1987 and 2013.”

Detrick said for now he would side with a strong economy and accommodative Federal Reserve allowing the market to take tax hikes in stride. Need to Know: Get ready for $178 billion of selling ahead of the capital-gains tax hike. These are the stocks most at risk

 

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All taxes are theft by the government!

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