January 20, 2016
There are a lot of things behind the recent stock market declines, but at least some of the blame for the 2016 bear market sell-off likely rests with Hillary Clinton and Bernie Sanders – the two Democratic frontrunners for president. At Sunday's debate it was a race to see who could raise tax rates the most. Sanders said he didn't want rates of 90 percent – but somewhere around there would be fine for him.
Clinton wants a 42 percent capital gains tax rate and an income tax approaching 50 percent. This is crazy, and more importantly for the stock market, bearish.
No wonder investment is tanking. No wonder there's a stock sell off.
Sanders is trying to get to the left of not just Hillary, but President Obama as well. He's attracting thousands of supporters at rallies around the country. He leads in New Hampshire. He wants to shut the big banks. He wants to spread the wealth. He wants to bash millionaires and billionaires. He wants trillions of dollars of new spending.
Clinton is right behind him.
Is it any wonder so many are rushing to sell their stocks and bonds?