A Snapshot of the Market for the Week Ended April 23, 2021:
The stock market could have had a very lousy week because the taxation risk reared its ugly head. The New York Times spooked the market on Thursday when it revealed that the tax rate for top earners will rise to 39.6% from 37% and the capital-gains tax could increase from 20% to 39.6% for people earning more than $1 million a year. According to Bloomberg, only 0.32% of American taxpayers would be affected. Nevertheless, a wakeup call that higher taxes are coming one way or another, thus ending the “Belle Epoque” for the super-managers and the rentier class. In spite of drawdowns on Monday, Tuesday and Thursday, the S&P 500 lost only 5 points to end the week at 4180-a shade away from its all-time high of 4185.
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By Hubert Marleau
By Hubert Marleau
