It will be very interesting to see the market reaction to the proposed (since the House hasn't voted yet) changes to the tax laws.
Dividend tax rates increase from 15% (far too low IMHO) to 20%... which is still too low.
We can argue on and on -- but it's this guys opinion that the tax rates are too low on top earners -- BUT -- BIG BUTT -- what top earners really understand and would like to see change is the WASTE that government does with the money they already were getting. That's a different discussion and let's not get into it.
My guess is if you're not in the market on Wednesday morning --- you're going to miss a very nice move UP. But that's just my guess. I'm thinking there's lots of money sitting on the sidelines avoiding a possible disastrous raise in the dividend tax rate... and since that appears to be set - that sidelined money should come pouring back into equities. I know that's what I intend to do. I'll scale back in but... I'll still be a net buyer. Around 40% of the one Schwab account I use for discussions here - is in "parked" cash.
