Markets were in the green today but gave back all the gains and turned lower by the end of the trading session. The Eurozone remains in focus and all eyes are on this Sunday when the Greek’s take to the polls. Markets also began to sell-off during CEO Jamie Dimon of JPMorgan (JPM) testimony in front of Congress on the recent trading losses the bank suffered.
The elephant in the room is Italy. If the the Italians need a bailout, nobody knows where that funding will come from (paging China – we need your money!).
Despite the recent correction in equities most investors still see an 8% gain from current levels by the end of the year. That would put us at a 14% gain for the year.
Oil also dominated trading today, and as oil fell so did stocks. Oil has been very volatile recently due to political and economic uncertainty and Thursday is the next OPEC meeting. Today Oil fell 70 cents to close at $82.62 a barrel.
Gold rose $5.60 to close at $1,619.40.
The DOW (INDU) lost 77.42 points, the Nasdaq (COMP) lost 24.46 points, and the S&P 500 (SPX) lost 9.30 points.
Today in D&D’s discussion this week on our “Comprehensive Long-Term American Deficit Solution,” we are highlighting the “Tax Reform Plan Component.”
“The main component of the tax reform plan will be the equalization of the individual and corporate tax rates at 10%, 15% and 25%. Individual Income Tax Provision: Dividends and capital gains would be taxed no higher than 15%. The Individual Alternative Minimum Tax would be repealed. Carried Interest would be taxed as ordinary income… An overall limit on itemized deductions as a percentage of total income would be imposed on taxpayers. The limit would be 25% of total income. The amount of itemized deductions in excess of 25% of total income could be carried over to future tax years. Corporate Income Tax Provisions: Repatriated foreign corporate earnings would be taxed no higher than 15%. In order to reduce long-term budget deficits, bonus depreciation would be eliminated. However, in order to help small businesses, the expense election under section 179 would be made permanent at $250,000. The Corporate Alternative Minimum Tax would be repealed,” excerpt from the paper “Comprehensive Long-Term American Deficit Solution,” by Del Lienemann, Jr.
Tomorrow we will briefly discuss the “Social Security and Medicare Plan Component.”