The Tax Season Will Combine With Other Factors To Weaken Stock Prices

Asian woman planning budget and using calculator on smartphone.


Financial stress is climbing in the short-term.

Inflation is up YoY and the monetarists set their own hair on fire. They don't realize that it is the interest income that is helping to fuel GDP. They also don't realize that when they start cutting interest rates, they will also need to increase spending on more progressive programs or else we get a recession.

Higher rates are bullish for stocks...until bank credit gets too high to maintain. BC has only recently started growing after going down for a year.

Household debt service payments as percent of disposable income. Private debt is near historic lows and able to take the current interest rate; rate cuts are not required at this point and, in fact, cutting rates could cause GDP to shrink.

We are waiting to see what happens after the tax-take on the 15th.

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