Tuesday, Nov 30, 2021 - 23:11:31
29 results - (0.000 seconds)

investors won’t:

latest news at page 1:
1
    London (CNN Business)Wall Street despises uncertainty. The less information investors have, the harder it is to make decisions about how to position for the future.Unfortunately, this is an example of peak ambiguity. Traders have been left in the lurch as the world rushes to respond to the discovery of the new Omicron variant of the coronavirus. And there's unlikely to be much clarity in the coming days."We have to go through a couple of weeks yet of uncertainty," Dr. Paul Burton, the chief medical officer for Moderna, told CNN's Paula Reid on Sunday.The raft of unknowns spooked financial markets on Friday, when the Dow plummeted 905 points, or 2.5%, logging its worst day in over a year. Oil prices plunged more than 10%. Friday was a shortened US trading day due to the Thanksgiving holiday. And as is often the case after a major selloff, markets are experiencing a bounce on Monday. But the comeback is modest, and the mood has clearly changed.Read MoreThe CNN Business Fear & Greed Index, which tracks market sentiment, is back firmly in "fear" territory.There...
    London (CNN Business)A record setting number of mergers. Eye-popping startup fundraising. Institutional hype over bitcoin.No matter where you look, the evidence is clear: The financial system is awash with cash from pandemic-era stimulus programs, forcing money managers to find new ways to deploy it.Take mergers and acquisitions. Worldwide dealmaking has totaled $4.4 trillion in 2021, according to a new report from data provider Refinitiv."With the all-time full-year dealmaking record broken in less than nine months and five consecutive quarters of more than $1 trillion in M&A activity, we have very little data to make true historical comparisons," said Matt Toole, Refinitiv's director of deals intelligence.Companies are also rushing to raise money on public markets, as investors scramble to buy shares of new debuts.Read MoreWall Street revels in the biggest IPO boom in decadesGlobal initial public offerings have racked up $301 billion so far this year, setting aside special-purpose acquisition companies, or SPACs. That's more than double levels from a year ago, and the strongest first nine months for global IPOs since Refinitiv's records began in 1980. Supporters aren't sitting around...
    In this article 3333-HK .HSI Outside the China Evergrande Group Royal Mansion residential development under construction in Beijing, China, on Friday, Sept. 17, 2021.Gilles Sabrie | Bloomberg via Getty ImagesThe Chinese government is not likely to step in to give direct support to debt-ridden developer China Evergrande Group, according to S&P Global Ratings. "We do not expect the government to provide any direct support to Evergrande," said the S&P credit analysts in a Monday report. "We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy." "Evergrande failing alone would unlikely result in such a scenario," they added.Even in Evergrande's home province, the developer is insignificant to Guangdong's vast local economy — it is not too big to fail.S&P Global RatingsFears over a potential contagion from Evergrande into the broader Chinese economy and beyond dragged down the Hang Seng index in Hong Kong by more than 3% on Monday. The sell-off continued across the globe. "We believe the Chinese banking sector...
    Baiju Bhatt and Vlad Tenev attend Robinhood Markets IPO Listing Day on July 29, 2021 in New York City.Cindy Ord | Getty Images Robinhood's chief legal officer, who used to work at the SEC, said the back-end payment brokerages receive for directing clients' trades to market makers is ultimately a benefit to retail investors. The SEC is "going to arrive at the conclusion that payment for order flow is undoubtedly an amazingly good thing for retail investors and they're not going to ban it," Robinhood's Dan Gallagher told CNBC's "Squawk Box" on Monday. Payment for order flow is one of Robinhood's largest revenue sources and the way the millennial-favored stock trading app is able to provide zero-commission trading. Payment for order flow is a controversial practice that has garnered attention from regulators and Main Street. Banning payment for order flow "is on the table," said Gallagher. "I think they're going to take a deep look at this issue. I think, by law, they have to go through a very arduous process." SEC chair Gary Gensler told Barron's last month that...
    VIDEO4:2404:24Concerns around China's regulatory crackdown intensify. Impact on global indexesETF Edge China's regulatory crackdown on some of its largest companies likely won't deter U.S. investment in its markets, according to ETF Trends CEO Tom Lydon. "There's no way that we're going to separate the capital markets of China and the U.S. They're too intertwined at this point. But everybody's in a competitive spirit," Lydon told CNBC's "ETF Edge" on Monday. "It is going to be all about choice," he said. "If you've got a problem with China, there's some great indexes out there that are ex-China. But China is the second-largest power in the world and they're going to continue to innovate." The race to build new and better technologies has continued to draw investor interest despite regulatory uncertainty, with the popular KraneShares CSI China Internet ETF (KWEB) raking in more than $2 billion as it fell in response to Chinese authorities' initial actions, Lydon said. "I think a lot of people are buying on the dip for all the right reasons," he said. "China wants U.S. investors. They...
    Trading information for GameStop is displayed on the Robinhood App as another screen displays the Robinhood logo in this photo illustration January 29, 2021.Brendan McDermid | Reuters Robinhood said Thursday that the first time Robinhood restricted trading on its app — during the GameStop event earlier this year — may not to be the last. In January, when an epic short squeeze erupted in GameStop's stock partially driven by retail traders, Robinhood shut down trading of certain meme shares due to increased capital requirements from its clearinghouses. Despite raising north of $3.4 billion in a few days to shore up its balance sheet, the brokerage limited trading of GameStop, AMC Entertainment and other Reddit darlings. "We cannot assure that similar events will not occur in the future," Robinhood said in its S1 filing to the Securities and Exchange Commission. As a brokerage, Robinhood has financial requirements to the clearinghouses that execute its clients trades, and some of these requirements fluctuate based on volatility in the markets. The volatility in January forced hikes in requirements and caused a flurry of outraged...
    President Joe Biden and First lady Jill Biden walk on the Ellipse near the White House on April 25, 2021.Tasos Katopodis | Getty Images News | Getty Images Roughly 75% of U.S. stock investors wouldn't be subject to an increase in the capital-gains tax rate due to the types of accounts they own, according to UBS. President Joe Biden is expected to propose raising the top federal capital-gains tax to 39.6%, from the current 20%, for millionaires.More from Your Money, Your Future:Here's a look at more on how to manage, grow and protect your money. Social Security beneficiaries got bulk of latest stimulus checks Biden energy, infrastructure plans may be windfall for investors How to handle that big tax bill from Uncle Sam When factoring in a Medicare surtax, the richest taxpayers would pay a total 43.4% rate on capital gains. It would apply to investment returns on stock and other assets held for over a year.Retirement accountsMany people would be shielded from the policy, however. To that point, about 75% of investors own U.S. stock in accounts...
    By MATT O'BRIEN, AP Technology Writer WILMINGTON, Mass. (AP) — “IF HE'S STILL IN, I’M STILL IN,” was the constant refrain from followers of Roaring Kitty, the YouTube personality whose enthusiasm about buying stock in video-game retailer GameStop made him an icon in the social media frenzy that shocked Wall Street last week. His hometown newspaper in Massachusetts dubbed him a “Brockton legend,” stirring dreams about how the former high school running champion might use his newfound riches to build the city an indoor track. Hollywood studios started sketching out movie proposals about the small-pocketed investors who banded together on social media to vault a troubled brick-and-mortar chain “to the moon” and punish hedge funds that were betting on its failure. But what was a big victory for Roaring Kitty, a 34-year-old whose real name is Keith Gill, is turning into hardship for followers who jumped on the bandwagon and took risky bets on GameStop's rollercoaster ride in the stock market. GameStop shares dropped 30% in afternoon trading Thursday, continuing to plummet from a high of $483 a week ago...
    An investor looks at an electronic board showing stock information at a brokerage house in Nanjing, Jiangsu province, China.Reuters BEIJING — The recent short selling frenzy on Wall Street will not likely come to China, where there are many more market restrictions. Short selling refers to a trading strategy that allows investors to bet that the price of a stock or security will fall. To short a stock, investors borrow shares and sell them, then ideally buy them back at a lower price later, and pocket the profits made. If the share price does not drop, the short seller will try to minimize losses by buying back the stock, which now costs more. Investors in mainland China have a limited ability to short stocks — a sign that the local markets are still immature. Tight regulation and online censorship in China also contribute to different investor behavior versus that of the U.S.VIDEO4:5704:57Regulation should protect not harm, says former Dallas Fed presidentSquawk BoxSince last month, millions of individual investors have piled into the WallStreetBets forum on Reddit, encouraging one another...
    VIDEO5:5805:58Mark Cuban discusses state of investing amid Reddit-fueled frezny around GameStopSquawk Alley Billionaire entrepreneur Mark Cuban told CNBC on Tuesday that he believes the Reddit traders who helped spark the GameStop short squeeze and subsequent stock surge will remain a force in the market. "I always was taught, 'You get long and you get loud,'" Cuban said on "Squawk Alley." "You get out there and create more buyers for your stock and the stock price goes up and that's exactly what's happening here, except it's just WallStreetBets that's doing the 'getting loud.'" Cuban's comments came as GameStop shares were plunging about 50% Tuesday to around $111 each, one day after losing nearly a third of its value. The videogame retailer's stock — which rallied 400% last week, reaching an all-time high of $483 per share at one stage — started soaring in response to a short squeeze that happened when online traders on sites like Reddit's WallStreetBets forum poured into the heavily bet-against stock. Cuban, who made billions of dollars during the dot-com boom, said he believes those online investors have gained...
    70-year-old Tennessee man wanted for 2 murders found dead Only 38% of nursing home workers accepted COVID-19 vaccines, new data shows ‘My family won’t let me go hungry’: Two young traders reveal the perils of trying to surf GameStop’s epic wave Last Wednesday, Michael Farrar parked himself on his parents’ sofa, fired up the trading app Robinhood on his phone and kept Reddit’s WallStreetBets forum open on his laptop. © Getty Images When he sat up four hours later, the Beaumont, Calif. man was more than $6,000 richer. The 23-year-old’s decision to sell AMC Entertainment stock he picked up at bargain basement prices in mid-March had paid off.   Load Error He filled out that profit with trades in companies including Nokia , BlackBerry Express and yes, GameStop all buzzy tickers on the forum he’d just learned about days earlier. Although these stocks and others have been shorted by hedge funds, they are apparently getting bolstered by love and big wagers from social media sites like Reddit’s WallStreetBets.  Last week, investors based on the Reddit...
    Jim CramerScott Mlyn | CNBC CNBC's Jim Cramer on Friday complimented the retail traders who helped spark the massive run up in GameStop shares, but advised they take their profits now. "Take the home run. Don't go for the grand slam. Take the home run. You've already won. You've won the game. You're done," Cramer said on "Squawk on the Street." "Please don't lose a lot of money on GameStop," the "Mad Money" host said. "Don't let them get hurt. It's our job" to make sure people know the risk.Related Tags Technology Wall Street Markets Investment strategy Stock markets
    Black, Latina and immigrant mothers are losing jobs as COVID-19 child care crisis grows How the US Navys nuclear-powered submarines have quietly dominated the seas for 67 years Relax. The Reddit-Hedge Fund Battle Won’t Tank Your 401(k) This article provides information and education for investors. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities. © Getty Images The Reddit situation means very little to the majority of investors. Amid all the freneticism of the Reddit-hedge fund battle, a simple fact seems to have gone unnoticed: It means very little to the majority of investors. Your 401(k) is probably fine, and your IRA is still doing its thing. Load Error To fully understand why that’s the case, let’s look at how we got here, and what it means for average investors going forward.What the hedge just happened?Hedge funds are investment vehicles that pool money from wealthy individuals. They’re less regulated than the common mutual fund, giving the firms that manage hedge funds a bit more...
    VIDEO4:5904:59This is going to be a very rocky quarter: NYU's 'Dean of valuation'Power Lunch New York University finance professor Aswath Damodaran told CNBC on Thursday the trading frenzy in GameStop and AMC Entertainment shares do not change the companies' fundamental problems and calls into question the long-term strategy for online investors who sparked the short squeeze in the stocks. Known as the "Dean of Valuation" for his company analyses, Damodaran said on "Power Lunch" he understands investors on sites like Reddit were motivated by a desire to cause financial pain for the hedge funds that shorted GameStop and AMC. "I've never been a fan of hedge funds. I don't think many of them bring much to the table and they charge absurd amounts of money for doing so," Damodaran said. "When I look at the investors who are driving GameStop and AMC, they're pretty open about the fact they couldn't care less about value. This has become a game." Short selling is a bet that a stock will decrease in price. When the opposite happens, a short seller may seek to...
    The Capitol is seen behind a fence and a sign, in Washington, U.S., January 15, 2021.Joshua Roberts | Reuters History tends to repeat itself, for better or worse. On Wednesday, January 6th, 2021, the U.S Capitol Building was invaded by pro-Trump nationalists. Five people were killed in the chaos including a Capitol police officer. Since the insurrection, President Trump has become the first U.S. President to be impeached twice while federal agents continue to make arrests. This was not the first time the capital was attacked either. It was famously burned down by British soldiers during the War of 1812. While political pundits pontificated how this dark day may impact the future of democracy, the markets kept chugging along, hitting new highs baffling some investors. But according to CNBC contributor and CEO of Ritholtz Wealth Management Josh Brown, the market usually ignores political events, "The market looked at the action ... It looked right through it like it wasn't even there. But that is not out of character. That is what stocks have historically been able to do."VIDEO1:4101:41Josh Brown: If...
    People pass a sign for JPMorgan Chase at it's headquarters in Manhattan, New York City.Spencer Platt | Getty Images Earnings season is upon us, but traders will be far less interested in fourth quarter results than in first quarter and second quarter guidance. The problem is it's not clear that CEOs will cooperate.Banks are strong going into earningsBig banks like JPMorgan Chase kick off earnings season on Friday. One good omen: banks are strong going into earnings season. "This is the first earnings season in recent memory where banks have been leaders going into earnings season," Alec Young from Tactical Alpha told me.  Indeed, the SPDR Bank ETF (KBE), a basket of large banks, is up 30% since the election, far outperforming the S&P 500. And unlike much of the market, they are not overpriced. "They have a lot of room to move up, they are not expensive," he told me. Why we need guidance now"As earnings season gets underway and gathers momentum a key factor to Q4 earnings season will be not just how expectations were met, missed, or exceeded in the...
    Another stimulus check most likely won't happen in 2020, according to Garrett Watson, a senior policy analyst at the Tax Foundation. The current goal for Congress is to keep the final relief measures of 2020 under the $1 trillion mark, said Watson. Another round of $1,200 payments would cost north of $300 billion and leave little room for other funding urgently needed across the country. A bill with direct payments would need to be much larger and most likely won't materialize until President-elect Joe Biden is in office, according to Watson. This would make the passing of major legislation by February an optimistic timeline. Check out this video for a full breakdown of the current stimulus proposal and to learn about what future legislation may include. More from Invest in You:'Predictably Irrational' author says this is what investors should be doing during the pandemicCoronavirus forced this couple into a 27-day quarantine amid their honeymoon cruiseHow to prepare for a family member with Covid-19 Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.Related Tags Politics Donald Trump Investment strategy...
    New York (CNN Business)President Donald Trump repeatedly warned Americans that if they failed to reelect him, the stock market would implode. In reality, the opposite happened.Between August and October alone, Trump sent six tweets saying markets would "crash" if Joe Biden were elected, using a word presidents typically avoid. "The Dow Jones Industrial just closed above 29,000! You are so lucky to have me as your President," Trump wrote on September 2. "With Joe Hiden' it would crash."Yet no post-election meltdown emerged. If anything, markets melted up as nightmare election scenarios were avoided and investors celebrated coronavirus vaccine breakthroughs from Pfizer and Moderna. The S&P 500 notched its best election week rally since 1932. And despite a sharp pullback Monday, the Dow is up nearly 12% in November, on track for its best month since January 1987. Read More"In terms of Biden being bad for the market, we can already see the opposite is true," said Daryl Jones, director of research at Hedgeye Risk Management.Wall Street has moved on from TrumpThere's no doubt that Trump's tax cuts and deregulation helped...
    Nikola Motor Company Two truckSource: Nikola Motor Company Shares of embattled electric vehicle start-up Nikola Corp. fell by more than 8% in afterhours trading after CEO Mark Russell failed to reassure investors that the company's $2 billion deal with General Motors would still go through and that ousted founder Trevor Milton wouldn't suddenly sell off his shares. During an interview on CNBC's "Mad Money with Jim Cramer," Russell said discussions with GM about supplying fuel cell and battery technologies as well as an all-electric pickup are ongoing, but he wouldn't comment much further than that. "Both of those things are interesting to us," he said regarding GM's technologies. "We continue to talk to them about those things." If a deal isn't finalized by Dec. 3, either side can walkaway. Russell also declined to speculate about what Milton, who stepped down as chairman in September, plans to do with the 91.6 million shares he owns after a lock-up period that prevented him from cashing in his equity ends Dec. 1. That includes 6 million shares in "founder options" he gave to...
    Rescued Mount Rainier hiker whose heart stopped in ER for 45 minutes brought back to life A third GOP senator comes out against Trump’s Fed nominee, putting confirmation vote on knife’s edge Trump isn’t going quietly and fiscal stimulus won’t come easily, but investors have bigger things to worry about MARKET EXTRA © Getty Images/iStockphoto Some may feel paralyzed by fear, but there’s really only one thing that should preoccupy us: COVID-19. 2020 has already been a year for the record books, and by some reckoning the hardest parts are still ahead. Load Error One of the most contentious elections in recent U.S. history has finally concluded, but President Donald Trump refuses to accept it, jeopardizing a smooth transfer of power even as a public health crisis accelerates, and raising the specter of a constitutional crisis. At the same time, it’s clear to nearly everyone that the economy desperately needs more fiscal support, but no-one in a position to make it happen can agree on how to do it. Still, sources who spoke to MarketWatch...
    NEW YORK – A huge fear for Wall Street coming into this month was a contested U.S. presidential election, one that could drag the market through more painful uncertainty. Now, more than a week after Election Day, President Donald Trump and his allies are challenging the results in a number of states that gave Joe Biden enough Electoral College votes to claim victory. And yet the S&P 500 has shot up more than 8% this month, as of Thursday, to the edge of its record high. While Trump has leveled unsubstantiated claims of widespread voter fraud, professional investors don't see the president's tweets and legal actions ultimately changing the results. “I’m a pretty conservative guy, and I’ve come to believe that Biden is going to be our president,” said Barry James, portfolio manager with James Investment Research in Ohio. “It’s just seemingly impossible that it would be anything other than that.” Biden's margins of victory in a handful of key states are wide enough that investors see it as a virtual lock that the Democrat will take...
    By STAN CHOE, AP Business Writer NEW YORK (AP) — A huge fear for Wall Street coming into this month was a contested U.S. presidential election, one that could drag the market through more painful uncertainty. Now, more than a week after Election Day, President Donald Trump and his allies are challenging the results in a number of states that gave Joe Biden enough Electoral College votes to claim victory. And yet the S&P 500 has shot up more than 8% this month, as of Thursday, to the edge of its record high. While Trump has leveled unsubstantiated claims of widespread voter fraud, professional investors don't see the president's tweets and legal actions ultimately changing the results. “I’m a pretty conservative guy, and I’ve come to believe that Biden is going to be our president,” said Barry James, portfolio manager with James Investment Research in Ohio. “It’s just seemingly impossible that it would be anything other than that.” Biden's margins of victory in a handful of key states are wide enough that investors see it as a virtual lock that...
    Daniel Loeb, Founder of Third Point LLC Daniel Loeb’s Third Point company won nearly $ 400 million on an upside bet on the outcome of the US election, placing this billionaire as one of the hedge fund winners of the latest market twists. A Financial Times analysis of the regulation requests and a letter from Loeb to investors show that “The hedge fund manager benefited from the market reaction to the election result, which had confused some investors.” The uncertainty caused the S&P 500 Index to drop 6% between mid-October and the day before the election, “with traders bracing for a period of intense post-election turbulence,” according to the FT. But “what really materialized was one of the biggest post-election rebounds in history, with the S&P 500 rising 7% last week alone.” Loeb told his fund clients several weeks ago that he had maintained his exposure to equities – “a much bigger bet on rising prices than falling as Election Day approached,” according to a letter that was analyzed by the FT. In a...
    Covid-19 death toll keeps climbing in El Paso, shelter-in-place order could be extended Elizabeth Warren calls out CEOs for weak and meaningless climate commitments Nervous about tech stocks as investors rotate to value? This chart won’t help © Getty Images/iStockphoto IN ONE CHART Load Error Investors spent the earlier part of this week chewing on the promise of a viable vaccine from Pfizer and BioNTech , as they exited tech stocks and threw big money at companies that have suffered the most under coronavirus restrictions. Bernstein Research’s Inigo Fraser Jenkins colorfully described the breakneck blue-chip rally as “tracks left in a cloud chamber from particles scattering in an accelerator.” On Wednesday, however, there was a clear pause in the rotation. The tech-heavy Nasdaq Composite was on fire early in the session, rallying about 2%, while the Dow Jones Industrial Average and the S&P 500 were just slightly higher. This chart from Chris Kimble of the Kimble Charting Solutions blog, however, suggests that tech stocks could be in for a world of hurt along the lines of the...
    49ers injury report: List of San Francisco players on IR near $80 million in contracts vs. Packers From ‘Surrender Dorothy’ to ‘Surrender Donald’: The Beltway bridge has a new message Big investors see a great backdrop for stocks as election results roll in CNBC's Scott Wapner spoke with some major investors who told him we could be on the cusp of a great scenario for stocks as former Vice President Joe Biden leads President Donald Trump and Republicans are expected to keep control of the Senate. With government divided like this, these investors are growing more confident that taxes won't rise sharply and liquidity would remain vast. One investor also told Wapner a split government means there won't be any massive government spending "to make the bond market go crazy." © Provided by CNBC Big-money investors are growing more excited about the stock market as the U.S. election results keep rolling in. Load Error CNBC's Scott Wapner spoke with some major investors who told him we could be on the cusp of a...
    New York (CNN Business)Investors are trying to figure out what's ahead for the stock market -- much of which will depend on who's elected US president. But it could be weeks or even months before one of the candidates concedes, according to new research.Only 16% of a team of "superforecasters" -- analysts with particularly good track records -- polled by the firm Good Judgment think President Donald Trump or Joe Biden will concede by the end of election week, says CEO Warren Hatch, who shared data exclusively with CNN Business.Another 43% predict there won't be an official winner until Thanksgiving. And 37% of the global market and economic superforecasters -- whom Good Judgment doesn't name -- think a concession will come sometime between late November and Inauguration Day on January 20, 2021.The growing worries about a lack of election outcome clarity for some time could lead to further volatility on Wall Street and make the disputed 2000 presidential race look like child's play. A Joe Biden win and GOP holding the Senate could be a nightmare scenario for stocks The...
    U.S. President Donald President Trump faces reporters after it was announced Bahrain has joined the United Arab Emirates in striking an agreement to normalize relations with Israel during a brief appearance in the Oval Office at the White House in Washington, U.S., September 11, 2020.Kevin Lemarque | Reuters Wall Street thinks it won't be just a long election night on Nov. 3. It could be a long election month. The September CNBC Fed Survey finds 47% of respondents think the winner of the presidential election won't be known for a week after Election Day. More than a third — 36% — said it could take a month or longer. Just 6% believe the winner will be known on election night and another 6% think it will be known within two days. And 86% of the 37 respondents — fund managers, strategists and economists — said a contested election is a current risk to the stock market. "To me, the balance of the year's market activity will depend more on what happens in the congressional elections vs. the presidential election," said Kevin...
    London (CNN Business)Investors eying Europe for opportunities as it continues to recover from the Covid-19 pandemic have another reason to pump money in the region.European Union leaders have agreed on a blockbuster stimulus deal following almost five days of fractious discussions in Brussels. The recovery plan, which will require the EU to tap financial markets for €750 billion ($858 billion), consists of €390 billion ($446 billion) in grants to struggling countries in the bloc. The rest of the money will be made available as loans.EU leaders strike historic $2 trillion deal to rebuild Europes economyThat's lower than the €500 billion ($573 billion) in grants initially proposed by the European Commission. The headline figure was reduced to appease a group of fiscally conservative northern European nations — Austria, the Netherlands, Sweden and Denmark — known as the "Frugal Four."But the agreement is still a huge show of unity and a big step toward the kind of strong fiscal coordination investors have long clamored for."With the biggest-ever effort of cross-border solidarity, the EU is sending a strong signal of internal cohesion," Holger...
    Would someone, anyone, explain to me the rationale for cutting capital gains taxes as a means to stimulate the Main Street economy? Former White House Chief of Staff and Budget Director, Mick Mulvaney, once known as a fiscal hawk, reiterated his support on CNBC Wednesday, for a cut in capital gains taxes. Capital gains are already taxed at preferential rates for investments held for longer than one year. The current cap gains rate is 20%. But, with the retention of the so-called net investment income tax, the total federal capital gains tax could reach 23.8%. In some cases, the sale of art, vintage cars or other more exotic assets, cap gains taxes reach 28%, but all long-term capital gains are taxed well below the highest statutory income tax rate of 37% on ordinary income. There have been calls, as well, to index capital gains to inflation — FYI, they effectively already are, based on currently published income tax tables. Given that the top 1% of the population owns the largest share of the nation's investment wealth, a cut in the...
1