DRAWN UP.
EDWARD THANKS VERY MUCH EDWARD
LAWRENCE AT THE WHITE HOUSE
MARKETS THIS MORNING ARE
REBOUNDING FROM YESTERDAY’S
DECLINE WE ARE WAITING ON
FEDERAL RESERVE FROM
INVESTMENT STANDPOINT FEDERAL
RESERVE CHAIRMAN JAY POWELL’S
SPEECH MUCH MORE IMPORTANT TO
INVESTORS THAN THE SITUATION
IN AFGHANISTAN.
HE IS SET TO SPEAK VIRTUALLY
THIS MORNING 10 A.M. EASTERN
FOX, OF COURSE, COVERING IT
WAITING TO SEE WITH WHAT KIND
OF LANGUAGE HE WILL SAY OR USE
RATHER AS FAR AS CENTRAL BANK
BEGINNING TO PULL BACK, ON THE
STIMULUS, WE ARE ALSO WAITING
ECONOMIC DATA THIS MORNING,
PERSONAL INCOME FOR THE MONTH
OF JULY SPENDING DATA OUT IN
30 MINUTES’ TIME JOINING ME TO
PREVIEW ALL OF THAT WELLS
FARGO INVESTMENT INSTITUTE
PRESIDENT DARRYL, JOINING THE
CONVERSATION ALL MORNING LONG
THIS MORNING DAGEN MCDOWELL,
AND MONICA CROWLEY, GREAT TO
SEE YOU THANKS VERY MUCH FOR
JOINING THE CONVERSATION, I
WANT TO BRING TO YOUR
ATTENTION A COMMENT THAT I AM
READING FROM CORNERSTONE
MACRO, CORNERSTONE MACRO THIS
MORNING, IS GIVING THEIR BEST
GUESS IN TERMS OF THE STIMULUS
PACKAGE AND WHETHER OR NOT WE
SEE THE SPENDING AND TAX PLAN
GO THROUGH IN THE FACE OF THIS
DEBACLE IN AFGHANISTAN.
SO MY QUESTION TO YOU IS DO
YOU THINK THE ECONOMIC AGENDA
GETS BLOWN UP BECAUSE OF
MASSIVE MISTAKES?
CORNERSTONE MACRO CONTINUES TO
BELIEVE THAT THE SPENDING PLAN
GOES THROUGH AND THEIR
PREDICTIONS ON TAX INCREASES
HAVE CAPITAL GAINS TAX FROM
20% TO 28%, NOT 43.4% WE’VE
BEEN TALKING ABOUT YOUR
THOUGHTS, ON WHERE TAX ARE
GOING, AND WHETHER OR NOT THAT
IS GOING TO BE A HINDRANCE FOR
THIS MARKET.
GOOD MORNING, EVERYONE.
MARIA DAGEN MONICA.
SO I THINK THEY ARE RIGHT, THE
PLAN IS STILL GOING THROUGH
ALBEIT MUCH HARDER AS BIDEN
ADMINISTRATION
LOSING CREDIBILITY
NONPARTISAN MAN, IN HOUSE AND
SENATE TO PASS THROUGH I
REALLYING WE HAVE TO ASSUME
3405 TRILLION DOLLAR THE
STIMULUS PACK OFFSET BY ROUND
OF TRILLION 1/2 TAX INCREASES.
UNFORTUNATELY, MEANS CORPORATE
TAX RATES FROM -- 21 UP TO
25.6 CAPITAL GAINS FROM 20 UP
TO 28 RESET THE I WERE END OF
THE PERSONAL INCOME TAX TO
PRE2017 LEVELS, STIMULUS GOES
THROUGH YOU UNFORTUNATELY
TATHS PROBABLY ARE HAVE TO BE
OFFSET SO THE RECONCILIATION.
>> THEY ARE TALKING ABOUT
CAPITAL GAINS RATED GOING TO
32% BECAUSE A 3.8% TAX ON
INVESTMENT INCOME, ON THOSE
EARNING OVER 250,000 DOLLARS,
THIS IS LIKELY GOING TO HIT
ANYBODY MAKING, AS LOW AS
400,000 TO A MILLION ON
CAPITAL GAINS DO YOU THINK WE
ARE GOING TO SEE A O HE
SELL-OFF IN THE MARKET BEING
THIS YEAR?
AS PEOPLE SPECULATE WHEN THIS
WILL TAKE EFFECTUATE WHETHER
OR NOT RETROACTIVE IS ANOTHER
QUESTION.
THAT’S RIGHT I WAS GOING TO
SAY THE BIG QUESTION, I THINK,
CERTAINLY I DON’T THINK
ANYBODY BELIEVED IN CAL MARKETS WE WERE GOING TO 39.6
MARKETS WE WERE GOING TO 39.6
THEN 3.8 UP TO 43, I THINK THE
CONSENSUS 28 PLUS 3.8 I DON’T
THINK A SELL-OFF IN MARKETS
YOU TOO MUCH LIQUIDITY
EQUITIES IMPORTANT PLACE TO BE
EARNINGS GROWTH STORY ECONOMIC
GROWTH STORY ROBUST, AS YOU
KNOW, I DON’T THINK PEOPLE
WILL RUN TO EXITS SIMPLY
BECAUSE CAPITAL GAINS TAXES GO
UP, IF YOU LOOK AT HISTORY, A
LOT OF TIMES IT SHOWS THAT
WHEN CAPITAL GAINS TAXES GO UP
PEOPLE DEFER TAKING GAINS, AND
HANG ON TO ASSETS LONGER THAN
SELL THEM IMMEDIATELY.
MARIA: THAT IS A GOOD POINT
IF YOU ARE YOU LONG-TERM
INVESTOR LONG-TERM INVESTOR
THINKING SHELL CHANGE IN FOUR
YEARS I MIGHT AS WELL HOLD ON
HOW ARE YOU ALLOCATING CAPITAL
WHAT DO YOU WANT TO SAY ABOUT
CHINESE STOCKS CHINESE REGULAR
LATORS SAYING BIG TECH
COMPANIES HANDLING LARGE
AMOUNTS CUSTOMER DATA WILL NOT
BE ALLOWED TO LIST IN FOREIGN
COUNTRIES INCLUDING UNITED
STATES CRACKDOWN TO CHINA
CONTINUES, THE CHINESE
COMMUNIST PARTY SAYS GOING TO
REQUIRE COMPANIES TO GAIN
APPROVAL FOR OVERSEAS IPOS WE
KNOW GARY GENSLER HAS BEEN
TOUGH ON THIS SAYING YOU ARE
GOING TO HAVE TO START
FOLLOWING SAME ACCOUNTING
RULES THAT EVERYBODY ELSE
FOLLOWS OR GET YANKED OFF
EXCHANGES.
>> WELL TO THE FIRST PART OF
YOUR QUESTION WE STILL LIKE
BEING IN A MORE RISK ON
SITUATION BACK HALF OF THE
YEAR THINK DYNAMICS FAVOR
EARLY CYCLE, HE RELATIVE TO
CHINA SAID THERE IS A BIT OF
THAWING YOU SAW REBOUND
CHINESE EQUITIES PAST WEEK ON
BELIEF PRESIDENT XI IS NOT
MOVING COMPLETELY AWAY FROM
DOING AWAY WITH CAPITALISM
TAKING ENTIRE CHINESE ECONOMY
TO SOE TYPE STRUCTURES I THINK
YOU SEE KIND OF COMING TO THE
MIDDLE MORE ABOUT AUDIT
REQUIREMENTS DISCLOSURE LESS
DELISTING WE WERE GOING TO
DELIST 248 CHINESE COMPANIES
IF THEY DIDN’T PROVIDE AUDIT
RESULTS AFTER THREE YEARS
ACCORDING TO NEW BILL, THAT IS
ON THE TABLE THAT WOULD
SHOTTEN THAT WINDOW TO TWO
USER THE CHINA CENTRAL
GOVERNMENT IS VERY GOOD ARGUE
BRILLIANTIANT ON NEGOTIATING
SOMETHING TO WATCH SEEMS
THAWING MORE TO MIDDLE THAN
POLAR OPPOSITE LIKE IT HAD
BEEN FOR SEVERAL WEEKS.
MARIA: QUICK, IN TERMS OF
POWELL DO YOU THINK THAT HE IS
GOING TO -- TALK ABOUT PULLING
IT IN?
OR MIGHT HE BE MORE MEASURED
GIVEN DELTA VARIANT NEWS
RECENTLY?
>> HE HAS HE A TOUGH NEEDLE TO
THREAD GROWING NUMBER OF HAS
BEEN ON COMMITTEE WANT HIM TO
START EXITING I THINK GOING TO
TRY TO STAY DOVE DELTA VARIANT
SUPPLY DISRUPTIONS WANTS TO
SEE ONE MORE LABOR MARKET
REPORT AT LEAST DID HE FIERCE
UNTIL SEPTEMBER THE STUDY
INSIDE THE STORY FED COMES OUT
HE 10 A.M. THERE IS HUGE OF
THES 10-YEAR TREASURY
SPRIESHGS TWO MILLION
CONTRACTS SPRIERZ TODAY
PROBABLY CREATING VOLATILITY
IN INTEREST RATES AS GO GOES