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BlackRock, Inc. Message Board

  • durdoc2000 durdoc2000 Feb 3, 2013 11:25 AM Flag

    Inflationary policy + New tax = PHYSICALLY IMPOSSIBLE to make money from stocks

    Lets say you buy a stock for $1000. You picked well and the share price appreciates 7% a year, for seven years. HOME RUN in today's economic environment. Your shares are now worth $1,606. You sell the shares and pay capital gains tax on the gain plus Obama's health tax. Now you have $1,364.

    Inflation runs 3.5% a year, and due to insane printing of worthless paper money infaltion may roar during the next seven years but we will ignore that, so the buying power of that $1,242 in current buying power adjusting for capital gains tax and government designed 3.5% inflation is really $1,071.

    After brokers fees you have less money in seven years than when you started. And that is if you are a great stock picker and win big, nobody reading this is.

    Because of Obama's tax regime and Obama's wild printing of new paper it is physically impossible to make a real return in the stock market using idealized assumptions, on a real risk adjusted basis anybody with any money in the stock market is totally screwed.

    Bonds are much, much worse in the current tax and print environment, every bond of every type is nothing but a certificate of confiscation.

    There is no place to hide and this train is on the track.

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