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President Trump has been saying for some time that he's going to implement the largest overhaul and biggest tax cut in the history of the United States. In fact, the White House released its aggressive plans to push Trump's tax reform bill through the House as early as October – and clear the Senate by the end of November.
This has largely been the reason the stock market has risen to all-time highs, with the Dow breaking 22,000 last Wednesday. But it's also caused a lot of media chatter this week, with some of the so-called "experts" calling for a market crash in two weeks.
Now they're entitled to their own predictions, of course…
But the latest "advice" they're giving to anyone who will listen is downright disturbing – and could wipe out all of the profits you've made this year…
Tax Reform Isn't Guaranteed – and Neither Is the Next Market Top
Part of President Trump's tax reform plans include dropping the business tax rate from 35% to 15%. The idea behind this is that the resulting growth will pay for this astronomical tax cut. After all, if companies are taxed less, then they should be able to reinvest those monies back into business, which would lead to more job creation and hiring.
Now, this belief about a lower tax rate isn't anything new… People will have more disposable income to spend on consumer goods and services (which also helps businesses). They'll also have more after-tax money to invest in the stock market and store away in savings accounts. All of these things, in theory, would only boost the markets and the overall economy.
And for that reason, the pundits all over mainstream news networks are now claiming to have identified the next market top (the highest price at which the markets can reach before reversing) – and are telling how they should be adjusting their portfolios because of it.
But here's the thing…
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.