The downside is that these big stores like $WMT will go out of business unless they raise prices which help the consumer. It should help the dollar, but it will take time. When that does happen though, #Walmart will get more bang for their buck so it could even out. But it's a big change and there are likely a lot of unforeseen issues which could arise.
American has one of the highest corporate tax rates at 35%. But they rarely pay anywhere near that since there are so many loopholes. Worse, many are "moving" to other countries to avoid the taxes all together.
#Trump's plan has some merits. It doesn't matter where a company is located, it only matters where they sell their products. So if they sell them here, they pay 20% taxes on that. If they sell them overseas they pay no taxes on it at all. So that helps to spur exports.
It also encourages manufacturing in the US, since they can deduct the cost of those goods if sourced from within the US. If they purchase the products from abroad they can't.
But stores like Walmart and Target buy the majority of their products overseas and sell them here in the US. So they'll pay higher taxes than a company which exports a lot of their goods, and sources at least some of their products for the US.
It is a tough time for department stores. I just don't see how they can compete with #Amazon and others like it. Not to mention, if #Trump can push through his new tax plan, it will kill stores especially, #Walmart and #Target. $AMZN$WMT$TGT
I'm certainly not laughing about it. But you win some and you lose some. As long as I come out ahead, I'm happy. And thanks to the excellent content on this site, I tend to come out ahead. I didn't even get the advise to buy $HAL here. I think that was on Seeking Alpha, which I've been reading less and less.
I have to agree with your assessment on $GILD. Do you know anything about $VBIO? I read a promising article here about their having a major breakthrough in #Crohn's research.
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Athleisure Remains The Best “Fit” In Fashion Stocks
The downside is that these big stores like $WMT will go out of business unless they raise prices which help the consumer. It should help the dollar, but it will take time. When that does happen though, #Walmart will get more bang for their buck so it could even out. But it's a big change and there are likely a lot of unforeseen issues which could arise.
Athleisure Remains The Best “Fit” In Fashion Stocks
American has one of the highest corporate tax rates at 35%. But they rarely pay anywhere near that since there are so many loopholes. Worse, many are "moving" to other countries to avoid the taxes all together.
#Trump's plan has some merits. It doesn't matter where a company is located, it only matters where they sell their products. So if they sell them here, they pay 20% taxes on that. If they sell them overseas they pay no taxes on it at all. So that helps to spur exports.
It also encourages manufacturing in the US, since they can deduct the cost of those goods if sourced from within the US. If they purchase the products from abroad they can't.
But stores like Walmart and Target buy the majority of their products overseas and sell them here in the US. So they'll pay higher taxes than a company which exports a lot of their goods, and sources at least some of their products for the US.
Athleisure Remains The Best “Fit” In Fashion Stocks
It is a tough time for department stores. I just don't see how they can compete with #Amazon and others like it. Not to mention, if #Trump can push through his new tax plan, it will kill stores especially, #Walmart and #Target. $AMZN $WMT $TGT
TweetDeck Can't Cure Twitter's Zero Growth Problem
Excellent analysis of the challenges facing #Twitter. $TWTR
Discussions On The Fed Put
Nice article Doug. And you are right again @[Roger N](user:41122), I couldn't agree more.
Halliburton Company Warning: Q1 EPS Will Miss Consensus View By Wide Margin
I'm certainly not laughing about it. But you win some and you lose some. As long as I come out ahead, I'm happy. And thanks to the excellent content on this site, I tend to come out ahead. I didn't even get the advise to buy $HAL here. I think that was on Seeking Alpha, which I've been reading less and less.
Gilead Crohn's Treatment Is Not The Solution To GLD Revenue Issues
I have to agree with your assessment on $GILD. Do you know anything about $VBIO? I read a promising article here about their having a major breakthrough in #Crohn's research.
www.talkmarkets.com/.../interview-with-vitality-biopharma-inc
Not a lot of info on the company though.
Halliburton Company Warning: Q1 EPS Will Miss Consensus View By Wide Margin
Thanks @[Lorimer Wilson](user:22485), I clearly made a bad call in buying $HAL.
This Is How Far Oil Prices Have To Fall To Trigger Junk Bond Chaos
I've become increasingly impressed by your work, @[The Heisenberg Report](user:37642).
Contracting Investor Assets Necessary To Fuel A Correction
Well done @[John Kosar](user:5062), I think you are right on the money with this.