John McCain Wins: Policy Changes
-Lower taxation on capital gains: McCain is calling for a cut to the capital gains tax cut and an increase in the amount of stock losses that investors can deduct from their income.
-Lower taxation on 401k accounts: He would allow those over the age of 59 1/2 to withdraw up to $50,000 from a 401k account at lower tax rates than they might otherwise face.
-Small business incentives through tax relief to spur economy
-Lowered tax rate for corporations: McCain wants to lower the top corporate tax rate to 25% from 35%.
Result: Sustainable rally
Barack Obama Wins: Perceptual Changes
-Obama favoring media, such as NBC, CNN, Bloomberg, which portray a negative view on the economy, turns positive.
-Regardless of change in policy takes into effect or not, small businesses will benefit which will result in short term rallies, as consistent with the past.
-Obama in office will be viewed as a positive internationally, especially those regions in the Middle East and
-Obama supporting investors who are selling off the market buy back in post election.
Result: Duration of rally questionable, depending on Obama’s economic advisors.
Conclusion: There should be a rally regardless of whether McCain or Obama becomes the next
1 comment:
Good insights. Today's rally in the market chose to move on regardless off with old and in with the new.
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