Barc: Tax Reform May Never Happen

Tax Reform

Last week I covered a report from analysts at Barclays, which claimed that Trump’s proposed tax changed will lead to a market crash when introduced.

The report was based on analysis of recent history’s most notable tax regime changes; the Reagan tax cuts.

A few months after the Reagan cuts were introduced, the market crash on a Monday in October 1987.

Barclays points out those investors, who survive this day were well rewarded in the months following. S&P 500 earnings per share rose 55% compared to 1986 levels, and by July 1989, the S&P 500 had recovered it's October 1987 losses. Based on this historic precedent, Barclays concluded that...