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This market is a bit painful right now, amazing how everything seems to be going to shit all at once. Right now, I'm back to where I was a few months ago. But,

This market is a bit painful right now, amazing how everything seems to be going to shit all at once. Right now, I'm back to where I was a few months ago. But, the economy is still pretty good IMO, I still have 40k in cash to allocate, planning to buy in if things go a bit lower. Trade war stuff should subside once people get used to the new reality, and the issues with tech stocks are mostly negative press, but fundamentals are still strong and that's what matters. Wait till earnings. I do not hold any positions in TSLA.

fwdpropaganda 9y ago
Trade war isn't a matter of people getting used to. You're adding actual frictions to the system.
- AnimalMuppet 9y ago
  To expand a bit: When you add frictions, you reduce the number of transactions that are profitable, and therefore reduce the number that happen. So total economic activity goes down.
- smileysteve 9y ago
  But this is optics/pr; let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on your chinese imports - but your value add is taxed at 14% less. It's really a shame the tariffs and the corporate tax rate weren't packaged together to be closer to revenue neutral.
  - fwdpropaganda 9y ago
    > let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on your chinese imports - but your value add is taxed at 14% less. I couldn't really tell what point you're trying to make. Also don't really why you're connecting those two. I'm sure in your mind it makes a lot of sense, but you gotta share it with the rest of us...
    - smileysteve 9y ago
      Thanks for letting me know that that wasn't clear. The point is that Tariffs are not happening in an economic vacuum; but are happening in the same space as a 14% corporate tax break. The extension of this is that tariffs collect revenue (much like taxes did) while enforcing a political agenda (encouraging changing of sources). If a "trade war" tariff exchange is isolated to raw materials (steel, aluminium, pork, etc) then tariffs are preferable to a higher finished good tax rate because there is margin on the finished good.

fwdpropaganda 9y ago

Trade war isn't a matter of people getting used to. You're adding actual frictions to the system.

AnimalMuppet 9y ago
To expand a bit: When you add frictions, you reduce the number of transactions that are profitable, and therefore reduce the number that happen. So total economic activity goes down.
smileysteve 9y ago
But this is optics/pr; let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on your chinese imports - but your value add is taxed at 14% less. It's really a shame the tariffs and the corporate tax rate weren't packaged together to be closer to revenue neutral.
- fwdpropaganda 9y ago
  > let's remember that 2018 dropped the max corporate tax rate 14% to 21%. So, Tariffs add 25% friction on your steel usage or 10% on your aluminum, or x% on your chinese imports - but your value add is taxed at 14% less. I couldn't really tell what point you're trying to make. Also don't really why you're connecting those two. I'm sure in your mind it makes a lot of sense, but you gotta share it with the rest of us...
  - smileysteve 9y ago
    Thanks for letting me know that that wasn't clear. The point is that Tariffs are not happening in an economic vacuum; but are happening in the same space as a 14% corporate tax break. The extension of this is that tariffs collect revenue (much like taxes did) while enforcing a political agenda (encouraging changing of sources). If a "trade war" tariff exchange is isolated to raw materials (steel, aluminium, pork, etc) then tariffs are preferable to a higher finished good tax rate because there is margin on the finished good.