Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (27016)	1/7/2003 11:18:11 AM
From: smolejv@gmx.net	Respond to of 74559

Hello Jay: Here's two straightforward answers to your mail: a) What, if anything, will you do ... in particular, how will you play the 'dividend tax cut'? I think... I know I mean a "Yes" but it's all wrong, that is I think I disagree ...I'll play it short in C# (Strawberry Fields forever) b) How do you intend to vote your wealth ballot on the deficit spending program that aims to prop up the stock market ala Japanese style, but in the US? I am just a little lamb, who wandered off the hard-trodden roads, reserved for mass meat transport, so God should not even notice the deficit spending program is not about to change my manners. RegZ dj (*)

To: TobagoJack who wrote (27016)	1/7/2003 12:29:14 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

>>In particular, how will you play the 'dividend tax cut'?<< Two macro things will happen, one short term, one long term. Short term, investors will flock to companies which pay dividends. Expect share prices (of companies paying dividends) to go up. Long term, companies will start paying dividends rather than retaining earnings. This will have a lot of interesting side effects -- less of an incentive to give the CEO a gold plated trash can, which is a Good Thing; less of an incentive to invest in R&D, which may be a Good Thing and may be a Bad Thing. I would expect CEO salaries and perks to go down, as well as R&D and capital investments. Oh, and less incentive to massage earnings so that there is "growth". One nice thing about dividends - you can't fake them. Which may lead to the unintended(?) consequence that old companies that pay dividends will be more popular than new companies that don't. No more insane valuations? No more dot com bombs?