Near the top of the list of things Wall Street can’t stand is rising interest rates.
That’s even more true now, with the Federal Reserve once again expected to hike rates after cutting them to zero in 2008, then keeping them at record lows for seven years as a way to inject adrenaline into a distressed economy. That “cheap” money was “jet fuel” for stocks, making equities the only place to get decent returns, says Mark Hamrick, First off, tax hikes and reductions take money right out of our paychecks, or leave more in. That’s why so many Americans find taxes vexing. But it also gives taxes a far more direct impact on the 70 percent of GDP that’s consumer spending. We already have a tax withholding system for our paychecks. So if the Fed adjusted tax rates over the course of the year, those changes would affect consumer spending regularly and quickly.
Taxes can also be designed progressively, to hit the richest consumers first and hardest. Indeed, the federal income tax already does this. When inflation needs to be cooled off, tax increases can slow the economy from the top down instead of from the bottom up. Progressive taxation is also a natural corrective to inequality. jim rogers gerald celente marc faber Thomas Lee, head of research at Fundstrat Global Advisors, said the bear market “stock market” “interest Rate” interest bank banking markets trade trading savings “savings account” 2018 2019 finance economy gold silver bitcoin crypto cryptocurrency jobs employment spring USA housing car “new car” “gold bar” Bullion Silver ‘silver coin” commodity “sell bitcoin” forecast “summer 2018” summer “sell gold” “trade gold” “buy bitcoin” for small-cap cryptocurrencies is over. But he said he still thinks bitcoin is the best bet for investors. “Increasingly, I think investors are comfortable that bitcoin is likely to be viewed as a commodity,” Lee said Tuesday on regulations change around security tokens and registration, bitcoin sits in its own sphere.”
“I’d still be buying bitcoin,” he said.
In a note on Tuesday, Lee wrote, “We believe the alt-coin bear market is over,” referring to cryptocurrencies other than major ones such as bitcoin and ethereum. The value of all cryptocurrencies excluding bitcoin has roughly halved from $376 billion in late December to $193 billion Tuesday, according to CoinMarketCap.
Lee still expects bitcoin to reach $20,000 by the middle of the year and $25,000 by the end of the year, he said.
The bitcoin bull, who is the only major Wall Street strategist to issue formal price targets on bitcoin, pointed out that the amount of time that bitcoin fell below $6,000 this year was relatively short.