Confirming reports from earlier this week that the Senate GOP tax plan would delay the corporate tax cut for (at least) one year, a move that would strip the proposed tax reform of its most potent benefit, moments ago the Wapo reported that in a few hours, Senate Republicans will propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019.
After a wave of GOP defections in recent days and waffling on timing, Goldman's economics team apparently still sees a 65% chance of a tax reform bill being enacted by "early 2018," but warns that the final bill may look nothing like the one recently proposed by the House.
Sell the news? Stocks are slumping (following Japan's overnight volatility) as traders await tax-cut legislation from the House Ways and Means Committee (and The Senate will also release its own version).
High-Tax companies are underperforming...
And Junk bonds just hit the lowest since March...
Let’s talk about inflation.
There are two types of inflation in the world… the “inflation” that you and I experience in the form of a rising cost of living induced by Central Banks devaluing our currencies…
...and the inflation that Central Banks are “targeting” in the bizarre claim that somehow hitting said targets will unleash economic growth.
Inflation #1 is depicted in the chart below. This is the reason why everything "costs" more today than it used to.
Authored by Lance Roberts via RealInvestmentAdvice.com,
Here we go again…
Since June of 2013, I have been writing about the reasons why rates can’t rise much and why calls for the end of the “bond bull market” remain wrong.