Market doesn't think tax hikes will happen: Trader

Market doesn't think tax hikes will happen: Trader

SUBTITLE'S INFO:

Language: English

Type: Robot

Number of phrases: 140

Number of words: 847

Number of symbols: 3731

DOWNLOAD SUBTITLES:

DOWNLOAD AUDIO AND VIDEO:

SUBTITLES:

Subtitles generated by robot
00:00
already yeah well let's we're up 82 percent from the march low scott so absolutely we're anticipating better growth by the way i'm not rooting for 10 growth every single quarter not nor are you probably because that will lead to much much higher inflation but again the question is is this as good as it gets and then when does the fed pull away and then all by the way now taxes are now top of mind of at least my colleagues myself as well i think we're gonna be able to handle that but now there are the question marks that's why i think that uh there are some surveys out there like the rbc survey today
00:32
that was a little more muted but it's still bullish yeah it's still bullish but but john barclays is out today right before we came on the air with a note that says the biden taxes would shave eight percent from eps in 2022. that has real ramifications for stocks now the market in some respects is obviously voting and saying well we don't think that the biden tax cuts are going to happen anywhere near the degree that the president thinks they might or certainly wants them and wishes them to and that's why the stock market is where
01:02
it is if it really thought that you were going to have some transformational tax changes the stock market would already be anticipating that right right scott um and i think what the president has laid out is a prudent plan uh in terms of paying for um some of this massive spending that we've got even though it uh the spending happens over seven years and the payments uh if we were able to collect those taxes would occur over 15 years but you're right the market is saying
01:34
right now we don't really think that this would happen certainly not this year could it happen next year very unlikely also scott because we're going into midterms in 2022 so i don't think we're going to see it happening in either of these two years the market being a forward-looking instrument is saying that you know we do need to find ways to pay for it we don't think it happens this year in the midst of us coming out of the pandemic we don't want to just hit the brakes really hard
02:04
and the likelihood of that occurring during midterms is likewise not very good so i mean you're exactly right the market is saying yeah the market is handicapping it saying don't think it's going to happen right i mean biden's going to try and get done what he wants to get done while he can get it done right he may not have a majority um even though it's a you know it's a thai tiebreaker in the senate he may not have that in in after the midterm elections he's gonna try and get done what he wants when he wants uh he may not be thinking about what the other implications of that are
02:35
whether the stock market's going to like it etc or what have you now what do you take though sarat from the fact that you've got a pretty broad swath of stocks hitting new new highs this week facebook alphabet microsoft talk about those ad nauseam i totally get it but talk about these sectors right a lot of home builders a lot of retailers shippers financials semis health care materials a lot of big name stocks that our our viewers own sarah are hitting new highs this week that's got to be a
03:06
bullish sign it is a bullish sign and i think the points that we've been talking about is what is the market believing going forward in terms of interest rates are they going to be going up or is this just a transient time of higher inflation and and that's why you're seeing a broad-based rally not just in financials and cyclicals and energy but you're also seeing it in the technology side and i think the other side you know consumer staples is is another area that that i think our viewers should also look at what we're having is
03:38
earnings are strong they're going to get stronger and i think going forward where investors should look for is what what are going to be some of the headwinds but at the same time we've got an economy that is thriving and all sectors right now seem to be participating in it too which is a good thing and and even if multiples don't expand i want to get back to this multiple idea if your earnings are expanding your stocks are going to grow as fast as your earnings and and i think that's something we got to look forward to because right now those headwinds are not there
04:09
and the market could you know will go forward and for those who are invested they're going to partake in the growth okay

DOWNLOAD SUBTITLES: