Higher rates have not always produced negative results for the stock market despite investor expectations.
- Tax increases may not be the obstacle that many investors expect.
- Typically, there is sizable federal spending as an offset.
- The stock market has the potential to see past tax increases because of other economic factors.
Beware of knee-jerk assumptions that tax increases are always negative for stock markets. As an investor, it's important to have a plan you trust and can stick with, no matter what happens in the short term with the markets. Talk to a Sandbox Financial planner to find a suitable approach for your own investing goals.