By Caleb Gibbons, CFA, FRM,– Originally at IBankCoin.
Corporate tax policy is very important for global investors, for obvious reasons. Trump’s first full week in the big chair is a good time to remind people of what the potential drivers are for relative valuation going forward. The topic of tax has come up already today, “We will cut taxes massively”, “We are going to impose a very large border tax”.
As a non-American, I can analyze such matters with a degree of detachment. It appears difficult for Americans to move on and accept that the card have been dealt, played, and that the spoils will be split with a different calculus than we observed under previous administrations.
Bonhoeffer Fund's performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more The Bonhoeffer Fund returned 3.5% net of fees in July, for a year-to-date return of -15.8%. Bonhoeffer Fund, LP, is a value-oriented private investment partnership for . . . SORRY! This content is exclusively for Read More
A great deal of Trump’s campaign dealt with “Making America Great Again” and clearly on tax policy there is some wood to chop. To a man with a hammer, everything is a nail, and with the mandate Trump has been given, change is coming, hard and fast. Much of the focus to date has been on the timing, rate and window to be provided for US corporations to repatriate the offshore profits they have been hoarding outside of the grasp of the US Treasury. The headline bounty is large, estimated at between $1.7-2.3 trillion (dwarfing even China’s UST holdings to scale it!). The effect on the US dollar will overall be muted though, as the bulk of the offshore cash is already denom