Thursday, February 16, 2017

People Invest Forward

Smart investors invest according to what they think will happen. They do not invest in what has already happened.

It is likely that Donald Trump will attempt to stimulate with a tax cut.

When Bush passed his tax cut, he gave everyone a refund check.

The problem with the refund check is that checks have to be financed with debt spending.

A better approach is simply to pass some spending cuts that take place this year and a tax cut that starts next year.

Smart investors will start making their investing decisions based on the tax cut that will come in the future.

We don't need to engage in the debt financing of refund checks.