Are Obama's policies good for the short term US stock market?

Question

Raising the capital gain tax will have a negative impact on the stock market because less stocks will be sold. This will hurt investors, among them middle class working individuals who are saving for retirement.

Answer 1

Barry is bad for the market, never mind his policies.

Answer 2

Countries taxing capital gains do not necessarily experience less stocks being sold. When stock markets plunge or when a business cycle hurts one industry rather more than another, or a given company is underperforming, investors/fund managers are bound to reallocate their funds/portfolio anyway, less they prefer to lose MORE than the capital gains tax. Also, most capital gains tax schemes work both ways: they give access to turn stock market losses into fiscal deductions (you have access to deduce from your revenue subject to taxation the value lost on capital invested on stock markets).

What may be the result, however, of a capital gain tax, is less volatility on stock markets affected by the capital gains tax, as day-trading often becomes less rewarding ,if at all, and usually mor risky, depending of course on the progression of the capital gain tax rate (how it is devised, whether as a flat fee+ a percentage, or whether a percentage alone and whether this percentage then is constant or increasing).

However another effect could be expected: in France, as according to French polls, Obama is "popular to very popular" among a majority of French voters. This might translate, should he be elected, in an increased interest for and trust that the US economy will take off, thereby creating an increase in the demand for US stocks from foreign investors! And this is benefitting working individuals in the US!

Therefore, the capital gain tax issue cannot be assessed solely on its own, it needs to be weighted as according to an enlarged context, beyond a possible negative impact on the amount of stocks sold. For this depends also on how the amount of stocks sold is measured: is it measured by the volume of stocks traded or by the turnover rate of a given stock (the volatility of the market). If the turnover rate falls, the markets will be less volatile, day-trading might be less rewarding, while thereby providing for a medium-term to long-term trend to emerge thanks to improved stability, and also this effect would actually be benefitting those investors saving for retirement (as they do so usually on a medium to long term time span and need to be able to project trends, something increased volatility might jeoopardize from one day to another).

Answer 3

hahahahahahahahahaha! obama has no clue,he needs to check with george soros a white billionaire that pulls his strings.............

Answer 4

short term... it's hard to say... they could buck a little bit, but that has little to do with long term retirement...

right now I don't think Wall Street trusts Bush... for good reason if you ask me... so we have a very worried market, which isn't good for spending...

long term, if Obama can get things going, I think it will be OK... he's really just returning to the 90s levels of taxes... and the market was RED HOT then...

Answer 5

With the current market, raising taxes and making more new ones will kill the economy!

Answer 6

Obama will cause me (because I own stocks) to lose a lot of money. His policies are no good.

Answer 7

His policies as I understand them will injure the markets.

Taxation is never good for the market.

Most investor know the guys running the company will pay themselves first, BEFORE taxes and then what is left will go to the investors.

If the company spends it's profits to grow and takes it's profits to it's corporate leaders, there will be less to return as "reward" payment to the investor.

Why as an investor buy into this kind of thing. They will divest and the market will slow, move down ...maybe even crash.

Answer 8

The impact will be minimal when compared to the current, overall economic downturn. If anything a move away from Bush capitalism will be good for the market.