Does it make sense to any of you that Obama kept American tax rates at 35% during his administration, all the while burdening business with heavy regulatory fees, in spite of the fact that he presided over an economy that failed to break the 3%+ growth GDP for the first time in America history?
If I was a conspiratorial type, I'd suspect he was trying to hamper the economy on purpose.
With President Trump promising to introduce 'big league' tax cuts within the next few weeks, companies who do the majority of their business domestically stand to benefit the most.
Source: Goldman Sachs, JP Morgan, Strategas Research
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And here are companies who stand to benefit from repatriation of assets held overseas.
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It's worth noting, the Russell 2000 derives around 20% of its revenues overseas, compared to 35% for larger capped companies in the S&P 500 -- making it the preferred index for those trying to play the Trump tax cuts.
For the past three months, the Russell is higher by ~12%, far outpacing the globalism themed S&P 500 of +7%.
Content originally generated at iBankCoin.com