What If This Is The Top? A Truly ‘Taxing’ Concern

Via Kevin Muir of “The Macro Tourist” fame I have often said that as traders, it is not our job to pass judgment on what should be, but, instead, to take advantage of what is. I will try to stick to that mantra when discussing the US tax “reform” package, but I must admit, it’s going to be tough for my feelings to not wiggle through. Regardless of your ideological views, I think we can agree on a couple of points. First, this is not tax reform. There is no wholesale dramatic ch

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3 thoughts on “What If This Is The Top? A Truly ‘Taxing’ Concern

  1. This piece brings to mind a quote I like from Steve Drobny (though I doubt he’d argue that the intellectual rigor behind the quote is his own): The world has changed. But it is always changing. Market practitioners always have to adapt to increasing complexity and new variables. Good risk management, however, is unchanging…I believe chip stack management is the most important skill in money management, far more important than brains, information or making the right call.”

    1. yes exaclty correct. one or all of us can know the “perfect” play in a game of craps or blackjack, but it wont tell you when it will hit or miss, but betting low when the odds are against you and betting more when you know the deck is slightly heavy on 10’s will outlast anyone swinging for the fences

  2. great article.

    buy the rumor/sell the news on taxes, yes. if ‘fits’ fundamentally with the idea that growth stocks generally dont pay taxes as they have very little profits, while value like consumer staples/utilities/industrials do pay taxes. but really at the end of the day its a one time bump in price, pricing in some years of paying slightly less taxes…..very few sp500 companies pay anywhere near the posted tax rate.

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