Thursday, March 23, 2017

WILL STOCKS GO DOWN? WHY NOT UP?

This is kind of a hurried post and will become mute tomorrow, maybe, but if the AHCA fails in tonight's vote in the House, the thought by the "experts" is that the stock markets will go down, maybe even 5% (a thousand points on the DJIA).  I would think the stock markets should go up because the ACHA is an awful bill, but I bow to the forecasters.  Why down instead of up?  The following quote from an article in the CNBC may tell the reason:

First, though infrequently discussed in detail, the failure of the American Health Care Act (AHCA) to pass the house and/or Senate means there will be no reduction in the 3.8 percent capital gains tax surcharge on wealthy individuals.

It could be that the very wealthy paying the surcharge dominate the market.  There is no limit to greed.  They would rather not pay the tax than help provide the poor, sick, and aged with health care coverage.

http://www.cnbc.com/2017/03/22/trumps-health-care-plan-failure-could-trigger-a-market-correction.html

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