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Apr 22, 2021 • 4 tweets • 2 min read
Avg holding period is below 1 year and most of returns come from price action so one could argue that capital gain tax increase 20->50% makes stocks 60% more expensive.
Add corp tax increase that'll eat chunk of earnings and multiply all by already highest valuations ever. #SPX
Don't know if historically lower/negative GDP growth in periods with higher capital gains tax is coincidence or not, but basic logic would agree that there is less incentive to invest with higher taxes.
