Taxing Matters

Taxing Matters 3 5 7 1:00 am pt

Stock market reaction around the world

is a vote against higher taxation without representation,

such as in the Chinese government.

If the money goes to what matters for the greater good of the people,

then there is a common benefit.

If the intention was to slow their economy by taxing foreign investment,

then that is what may happen now.

The United States has argued against taxation from the start,

and has learned that lower taxation has spurred the economy

far more than higher taxes.

All this selling is the adjusting to the new realities

of the cost of doing business in a global economy.

I have experienced market reactions since 1970

and was short the market October 16th 1987.

We are in one of those panic reactions

with program trading even greater than before.

An unwinding of positions is happening that will bring a wonderful opportunity

to buy stocks again, but at much lower prices.

Probably when the Dow is well below 12,000.