Tax Season Combined With Other Factors Will affect Stock Prices

ANG Traders
2 min readApr 12, 2024

Summary

  • Financial stress is increasing in the short-term.
  • Inflation is rising year-on-year, causing concern among monetarists.
  • Higher interest rates are positive for stocks.

staticnak1983

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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ANG Traders

Forty years of private equity trading, and still learning.