/biz/ - Business & Finance

Warning to /biz/ screencap this
>Be investor in top tax bracket
>Made money off of this Trump rally
>Want to take profits
>Remember trump is going to lower your tax rate
>Wat do?
Trump’s proposed tax plan would impact investment income in this way:
>Lower top income rate from 39.6% to 33%
>Remove Obamacare 3.8% investment income tax
Let’s do the math:
>Sell in 2016 and realize (39.6 + 3.8) = 43.4% tax rate
>Sell in 2017 and realize 33% tax rate (based on trump plan)
2016:
>Have X dollars in stocks income
>X * (1 – 0.434) after tax income
2017:
>Have X dollars in stocks income
>X * (1 – 0.33) after tax income
10k income would give back:
>2016: 5660
>2017: 6700
How much would the stock market have to go down to justify holding through New Year?
>6700*(1 – Loss) = 5660
>Loss = 15.5%
This means that 15.5% loss on stocks (income) would justify holding through New Year
>Rational people realize this and won’t sell this year
>VIX is still in the fucking 12s, but rising today
>Lots of euphoric buyers
>Lack of sellers
>Confidence highest level in long time (irrational exuberance)
>Not even a pullback yet
>Very low volume
>All of the financial pundits claiming Trump would crash the market now saying market is invincible
>Rising rates
I could go on and on, but I think a tax selloff will be the trigger
You have been warned