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Retirement Capital Strategies
  • Getting Started
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  • Talk Money with Tom
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  • May 18, 2021

Market Update: Market Dips on Corporate Tax Talk

Disclaimer - Read More

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

If you have questions, please write to us at: asktom@talkmoneywithtom.com.

  • MoneyGuidePro®
  • Advent Software/Black Diamond Reporting
  • Riskalyze, Inc.
  • thinkpipes®
  • Right Capital
  • YCharts, Inc.

Transcript:

Tom Vaughan:

Everybody, welcome to Tuesday, the S&P 500 was down .85% today. It was an interesting day, all the things were hanging in there, the S&P was kind of at a breakeven, the NASDAQ was actually up. And then Janet Yellen was speaking to the U.S. Chamber of Commerce, and started to talk about the possibility of increasing corporate taxes to fund the American Jobs plan. And the market, you can see it right away, starting to fall right off of that standpoint. So it gave me a couple of pieces on that, just from my opinion.
If you look back, historically, corporate taxes, and stock market rates of return, and they’re not that heavily correlated. I remember some fantastic markets where the corporate tax rate was quite a bit higher than they’re talking about moving it to. Right now it’s at 21%, moving that to 28%. But it was higher than that, and we had better markets. And I’ve also heard that, really, in the negotiations, 25% is looking more likely.


So you know, we’ll see what happens. So I’m not that concerned about corporate taxes as a whole, I think there was more important information that was happening with, for example, we saw the price of oil come down quite a bit, because now there’s talk that Iran may be allowed to come back online, some negotiations, over their nuclear deal and what have you. And that would bring in a big supply of oil. And that’s a fairly important component, because a lot of times when you have a higher inflationary environment, you see that price of oil as part of that, and it can be quite high. So, bringing that down, bring some, I think some of this inflationary pressure down. And I think that’s probably why we were seeing the NASDAQ do better, because, again, less inflationary pressure, the growth stocks have a better chance.


As far as that goes, I also think the NASDAQ’s doing better just because it hasn’t done well for quite a while, and people come in and bottomfish, and what have you to. I still think the big gains are going to come off at this value side. And we’ll see how that plays out. But fascinating day, fascinating timeframe, as usual, I don’t see anything in here to be concerned with. The market has been kind of soft for a little bit here. But it really, if you look at the underpinnings of what’s happening, it’s really just kind of a rotation out of some of these bigger growth names and into some of these more value stocks. And so sometimes that reflects negatively in those indexes, like we saw yesterday, even though our portfolios were up even though those indexes were down, and that’s because these big companies that are the bigger part of those indexes, were struggling, but a lot of these value plays that we’ve got in the reopening stocks are doing okay, so.Look forward to seeing what’s going to happen tomorrow, and we’ll talk to you then. Thank you very much.

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Disclaimer - Read More

Tom Vaughan is a Certified Portfolio Manager and CEO of Retirement Capital Strategies. Retirement Capital Strategies is a registered investment advisor located in San Jose, California.

The opinions voiced in these presentations are for general information only and are not intended to provide specific advice or recommendations for any individual(s). The information provided herein is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Statements and opinions are subject to change without notice. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Accordingly, you should not rely solely on the information contained in these materials in making any investment decision as the material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this presentation. Before acting on information discussed in this presentation, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Prospectuses, investment objectives, risks, charges and expenses of any investment product should be reviewed carefully before investing. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Retirement Capital Strategies and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Tom Vaughan or Retirement Capital Strategies unless a client service agreement is in place. “Likes” are not intended to be endorsements of our firm, our advisors or our services. Please be aware that while we monitor comments and “likes” left on this page, we do not endorse or necessarily share the same opinions expressed by site users. While we appreciate your comments and feedback please be aware that any form of testimony from current or past clients about their experience with our firm is strictly forbidden under current securities laws. Please honor our request to limit your posts to industry-related educational information, comments and questions. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Investment positions mentioned in these videos may be held in some of our existing portfolios. Tom Vaughan and Retirement Capital Strategies are unaffiliated and separate from those companies whose investment positions are mentioned and is not liable for their products or services.

By participating in any of these live streams, you agree that any questions submitted by you might be used by us in the future on this YouTube channel. We will not share your personal information.

If you have questions, please write to us at: asktom@talkmoneywithtom.com.

  • MoneyGuidePro®
  • Advent Software/Black Diamond Reporting
  • Riskalyze, Inc.
  • thinkpipes®
  • Right Capital
  • YCharts, Inc.

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