Why Higher Taxes Are Not a Barrier to Economic Growth

The U.S. has one of the lowest individual income tax rates among the developed countries. For example, the top individual tax rate used to be 91% in 1960. For the 17 years from 1965-1981, the top individual marginal tax rate was 70%. However President Ronald Reagan reduced it drastically from 70% to 28%. Currently the top …

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For the Next Stock Market Rally, Watch The Quality Cycle

Investors waiting to return to equities may want to consider the quality cycle, according to an article in the Risk and Reward report published by Invesco Perpetual of UK. Bear markets and recessions are usually followed by “junk rallies” in which low-quality stocks take the lead and their outperform high-quality peers. These speculative rallies can …

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Checking for Opportunities in Foreign Healthcare Equipment and Services Provider Stocks

Healthcare stocks are generally considered as defensive stocks. So investors looking for a place to hide in the current volatile equity markets can consider this sector. In this post let us take a quick look at some of the foreign healthcare equipment makers and service providers traded on the U.S. markets. The universe of foreign …

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Comparing Historical Real Returns of Select Developed Equity Markets

Dividends account for a large portion of total returns especially over the term. Real returns – that is excluding inflation – include dividend yields, dividend growth and multiple expansion (P/E). The following chart shows the split of real returns of select developed countries: Source: Risk and Reward, Research and Investment Strategies,1st Qtr 2011, Invesco The …

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Knowledge is Power: Financial Advisor, Emotions, Sustainable Capitalism Edition

Investor fired his adviser and loaded up on dividend stocks When Should You Use an Advisor? China’s debt-heavy bosses go on the run Fool’s gold Why emotions and investing don’t mix What’s the use of saving money? Governments must act on rising long-term unemployment and youth joblessness Citywire Top Stocks Germany goes for sustainable capitalism …

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