SHOW FULL TEXT
Our staff right and I was checking the average corporation pays like 17. There are a lot of corporations really get taxes raised .
We can also we’ve seen we see technology , which is you know I’m you know a good a good sort of easy way. I think not know exactly a thorough way but an easy way to look at what’s happening with tactics . Look at the Nasdaq in their home , that’s a great under the Nasdaq composite and you know the Nasdaq is actually gotten hurt pretty substantially over the last week or so with the idea of attack quote unquote , we’re going to benefit the least from all the changes that work earning in terms of the new tax policy , but at the 11th hour they threw in this corporate alternative minimum tax . I think it was Saturday morning at 1:00 AM or something very wrong to get someone’s vote for .
They wrote in unmarked. Yeah , I mean like Ray . This is not right . Normally , read it and and well if that leads you to believe .
That that there still a lot that has that you know the plot. What the final bill looks like they’ve get that gets reconcile between the House and Senate versions of the bill . Yeah he is gonna look different than where we are today . The sauce is still in the greater yeah and and so the idea that somehow based on what the , the Senate approved you know at you know at the 11th hour to try to , you know , get something done in moving forward , if somehow how you should make a decision of what to do with with your stock portfolio , you’ve got on on Monday . Not a good idea somewhat was done and that is , you know , that is , well , it’s , I mean it . If it’s so amazing to you . Nobody understands even at even based from what we know today , no one really understands the real impact of what’s going to happen you know these bills . Always have . You know when they’re eventually made law in the law , they always have unintended consequences . There they always you know there’s a there’s a complexity that that really makes it difficult to to provide real clarity as to what’s going to happen . And yet there’s no shortage of experts out there that know exactly the companies that are gonna benefit you know you can go online and look at lists of companies that are gonna benefit the most , and and sectors that are gonna benefit the most from the least them and you know I I would just you know throughout a lot of caution that you know you shouldn’t be making your decisions about what you should have in your portfolio . Based on what you think is going to happen to 52 fiscal policy in Washington now . It’s an impact a company’s gonna take a little while today you know after actually passed actually know what’s going to happen in the long run .
Yeah , I mean what is the overall , consensus seems to believe based on what we saw last weekend in the towel and I guess the S&P , which I suppose is probably a better indicator of of the help of the actual companies at least according to you and I. I have to agree with that . What we saw is that with the general perception is that tax reform corporate , you know , cutting supposedly cutting corporate taxes , cutting him at the top , giving the wealthy a big tax break is going to , it is better for the the you know socks is ultimately better for stocks is that true . Well I know I don’t you know if you’re it .
You think so on a relative basis , I mean I think I think we do just she has , we would have seen just as much maybe you’d seen different stocks move right. Yeah . Instead of , you know what’s done really well as the high tax paying corporate stocks in the market , right . An 80 year if the tax plan would have been more directed towards individuals and towards the middle class . Yeah , we would have seen a different group of stocks grew up there maybe consumer discretionary would have benefited more . Yeah . Who knows , but it makes my my I guess work Muamba border caution is is that I would , we would rather own and I think most people out there think about it would rather on companies that could grow their earnings and the revenue despite what’s happening , whereas you right , you mean fundamentals of a company do you remember way back when , after the recession we had we had this whole notion of shovel-ready projects . Yeah . And all these companies that that did well in the 6 months after that was thinking they would benefit tremendously from all this infrastructure spending and you were gonna see it again , because we’re gonna get probably get an infrastructure bill next year sometime . So we’re gonna see it again and you see this run up at all . The stocks and what have you . Nothing was disappointment no impact on earnings and they all came back down again . So you know , I would , yes , and that’s , that’s just one example , there are a lot of examples of that flight but you know , we would rather focus on companies that can grow their revenues and earnings . You know , regardless of what’s going on in Washington . Whether there’s perceive had headwinds perceived here Wednesday . In the short run . That might make their know that if you’ve got perceive had winds that may make that sector got out of that company go down if you think that sector . But over the long run if the growing earnings despite all that , then the stock .
We’ll go up , that’s the whole over the long run. What you’re doing is you’re sitting on the train Europe following the track , the way that you have said this is my plan . This is why I’m here , I need to go there . I’ve got a strategy to get to where I want to go . You’re looking out the window watching all this fun stuff happening people jumping and doing all this stuff and all that but but ultimately that means very little to somebody like you , Mark and shouldn’t mean anything to anybody else , because as you said , I mean one of the fundamentals . One of the one of the underlying assumptions being made about this company .
You think that if you’re buying a company if you if you participated in this wrote quote unquote rotation over the last couple weeks and over the last week , especially less couple days then you’re but the vet you’re making is based on one thing that this company is a high tax rates , so therefore I wanna buy their company because they’re going to benefit if if they have that , I mean think how ridiculous that sounds and short-sighted , but that’s what people are doing in the short run. Traders are doing that in the short run and you know in the short run so far it’s worked and so it doesn’t work , and it’s not there , we see some signs of it not working even today .
So well. Sure . So , so in the spirit of that I’m not happy to predict the market and , but I am sort of you know , I don’t know if you do you see that the results of all this frenzy as soon as people realize , oh , this is , you know it when it really gets back to normal . Do you see some sort of maybe even the current correction or you know , maybe a little bit of the downturn . At some point . Well , I did .
I think you’ll see me the question , and I mean a correction in terms the next right now , yeah , no market , but you’ll see some kind of adjustment again correct of the worse it once again once we understand eventually if it gets passed what what impact the tax bill will have on companies , I mean , for instance , you know it. What’s , what’s really I think notable is that it would , you’ve seen movement in different stocks with as the probability of having a tax plan . You know go into effect actually increases which suggested it really hasn’t been completely priced into the market . Despite what some , some people have sort of assumed or or suggested . Now that doesn’t mean that , that doesn’t mean that it’s gonna that’s the way it’s going to work . Stocks at a benefit that’s it’s gonna turn out in the end . Yes , because they said there’s still a lot of the sausage still to be made and we’ll have to see how it turns out , but , but I don’t think you’re gonna see some you know this suggesting out there that once it passes the that’s the time to sell because you sell on the news and you why up in upon the rumor right as the thing is , I mean when Israel and all that , you know it rumor , sell the news so the FBI . I think there’s a fair number of people out there that are thinking as soon as it happens . If it passes . We’re gonna we’re gonna and that’ll be the right hand out because then they know you know will be fully priced into the market , and given that we these details are changing minute by minute , if you , I’m not sure we’re going to have a good sense of .
Completely who’s going to benefit is not no I made it that and we should keep in mind that type of marks the other chief investment officer which is therefore management says that this is not any indication where try to become short term Quays on the market. This is still the markets are still a long-term proposition . We got a great with a comeback with more jaded professor worthwhile down though cheap and have been offered would you Capital Management back right after this .
Because the medical needs and goals of all his life goes on. You need an investment strategy that’s adaptable over time since its inception , the Lucia Capital Group bucket strategy has been refined in and has to address many of you changing needs creating additional opportunities for many junior long term buckets auctions to incorporate , non-correlated investments access to investments in a you manage the risk of outliving your money and ways to invest for tax efficiency . The bucket strategy has a simple structure designed for your income each today and the potential for growth tomorrow and customized for each investor . Find out how a pocket strategy can be created just for you then attempted to align with your goals over time schedule a complimentary consultation at 644-115-8 4-11 50 or a good Aluchia cap.com Lucia cap.com security in which securities a multi-member FINRA SIPC , a subsidiary of here Capital Group , an affiliate of look year old services the strategy involves investment subject to risk at Wiltshire Capital Group . We believe there were 3 critical steps that should precede making any investment decision education advice and planning education learn about available options and expand your understanding of investment products advice get guidance from experienced financial planning professionals who you know understand your specific needs planning choose a strategy to consistently supports your investment decisions . Where can you go for financial guidance to look at group invites you to build your wealth education and welfare.com welfare.com features live and on-demand video programing featuring Aluchia Capital Group advisers who will help educate you know .