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Strategies & Market Trends : Galapagos Islands

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To: MulhollandDrive who wrote (42651)6/24/2003 1:16:00 AM
From: Libbyt  Read Replies (1) of 57110
 
From the article you posted:

"A: Since October of last year, corporate bonds have been up nearly every day. They've been really strong, and that is an added stimulus on top of what the Fed has been doing. The tax cuts certainly have had more of an investment tinge this time around. Not only did we get a dividend cut and the capital-gains cut, but people in the top bracket will see their rate cut from 38.6% to 35%. That's a tremendous drop in taxes. So that's a tax cut on top of a tax cut that was already out there. The dollar, which had been drifting down for almost two years now, really started tumbling earlier this year, and that's another stimulus. It is a risky stimulus, but another one all the same. There have been so many added kicks that the market took off after mid-March.

Q: But how stimulative are these tax cuts? Don't they just benefit the rich?

A: There is some truth to that. But the rich are the ones that own the stocks. So, it won't mean much for the whole economy or for the 1.8 million people who have lost jobs in the past three years, but it is very bullish for the stock market and stock investors."

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IMO some of the points made in this article are *bullish* for the market in a short term time frame.

Right now with all of the recent tax cuts and the various market incentives that have been mentioned in this article, IMO investing in securities that pay a dividend seems to be becoming more attractive to the average investor.
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