Tax Holiday

  • 01 Dec
    Here’s What Corporate Tax Reform Would Do For Stocks

    Here’s What Corporate Tax Reform Would Do For Stocks

    • There are two big things that can impact stocks, lower corporate taxes and a tax repatriation holiday.
    • We’ll discuss which stocks would benefit the most and if it makes sense to invest in them now to reap any kind of benefit from tax reforms or a tax holiday.
    • I’ll also share my opinion on the long-term impact lower corporate taxes would have.



    Introduction

    There’s a lot of talk about tax reform and how it should have a positive impact on the markets. However, it’s important to understand what exactly could happen and how it could impact your portfolio.

    In today’s article, we’ll discuss what all the fuss is about and see what the plausible impact on individual stocks and the stock market would be. More →

  • 15 Dec
    This Could Push The S&P Even Higher

    This Could Push The S&P Even Higher

    • The market looks overvalued but there are three main factors that could push it even higher.
    • A repatriation tax holiday could make $2.1 trillion available for dividends, buybacks, and M&As.
    • Economic growth and inflation could push earnings higher, further inflating stock prices.

    Introduction

    It seems that everyone agrees on the fact that this market is overvalued and borderline irrational. However, there is no correction in sight and the only question to be asked is “how high can this market go?”

    The S&P 500 has jumped 5.4% since Trump won the elections, and is 12.1% higher year-to-date. By adding in the 2% dividend yield, we arrive at an excellent 14% return for 2016. This year’s positive return will make it number eight in a row for the S&P 500 as it has been rewarding investors since 2009. More →

  • 17 Oct
    Why A Market Crash Could Be Just Around The Corner

    Why A Market Crash Could Be Just Around The Corner

    • We’ll discuss some risks first and then discuss potential rewards.
    • Valuations are the tipping point toward a riskier perspective.
    • After reading this article you’ll be able to decide for yourself what the best strategy is for you to follow.

    Introduction

    In order to see where the market is going, let us first take a look at what the market has been doing in the last two years.

    The market has had a 7% yearly return if we look at it from October 15, 2014, however, if we wait a month, the yearly return for the last two years will fall to 1.8% per year. 1.8% a year plus a dividend yield of 2% isn’t bad in the current low yield environment, but it is bad when compared to the risks stock investors are running. More →

  • 03 May
    Tax Holiday Could Repatriate $2.1 Trillion

    Tax Holiday Could Repatriate $2.1 Trillion

    • US companies have more than $2.1 trillion abroad.
    • 12 years have passed since the last tax holiday.

    Introduction

    A tax holiday is a government incentive to businesses where it lowers or eliminates a tax for a period of time. The most interesting tax holiday for investors is a corporate income tax holiday on the repatriation of foreign cash. Typically, any repatriated cash is subject to a 35% corporate income tax and therefore US corporations are reluctant to repatriate it and keep their cash abroad. The last tax holiday was voted by Congress in 2004 when companies where allowed to repatriate cash at a 5.25% tax rate. Many companies took advantage and repatriated billions of dollars. 12 years have passed since then and it is time to look at what the investment opportunities are related to an eventual new tax holiday. More →

    By Sven Carlin Investiv Daily Tax Holiday