The S&P 500 continues down its record-breaking path as it hits historic all-time highs. This news comes as a shock to some as it stands in direct contrast to the recently reported rise in jobless claims, again proving that one sector is not necessarily dependent on the other.
As more Americans file for first time unemployment benefits (the total reported number now being 744,000) one can’t help but wonder if the recent rise in certain sectors of the markets will be able to hold out or if we could soon see our economic bubble pop.
Washington’s Plan
Washington officials are working around the clock to be able to juggle the multitude of issues currently being thrown at them in addition to the above, including vaccine distribution and a bad case of national unrest. All of which is being handled by a new administration that, 3 months in, has yet to have the time to find their footing in the White House.
As recently discussed in a previous article, the Biden team plans to raise the corporate tax rate to help pay for the planned resolutions to some of the above problems presently being faced. This too, however, is a mixed message to some as many continue to feel concerns that a rise in corporate taxes will send U.S. based companies running for the borders leaving many hard-working Americans jobless and, therefore, adding to one of the very problems we’re working to resolve right now.
An advanced preview of what we could see nationwide is currently being played out in places like New York as controversial Governor Andrew Cuomo has recently announced his plan to hike the corporate tax rate in his state. It’s decisions like these that have led New York state to report the highest small-business closures in the nation, according to new Facebook data.
As the new administration takes drastic moves to “protect” the American people, many of those very Americans find themselves in worse shape than before. Raising the corporate tax rates to punish BIG BUSINESS, will only push those businesses away from U.S. soil to more tax friendly nations, allowing them to continue to bring in massive profits only, this time, without the help of the American people who desperately need their paychecks.
This Market and Your Investments
It’s these types of issues that we need to be watching in the months ahead as they will eventually have a direct impact on the U.S. and global markets and, potentially, your investments.
If you’re interested in hearing how the early stages of the Biden agenda have impacted today’s markets, we encourage you to join DTI founder and head trader Tom Busby below as he dives into what he’s currently seeing happening in the markets and ways he thinks we can all take advantage.
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