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History Lessons from past Tax hikes Thumbnail

History Lessons from past Tax hikes

Higher rates have not always produced negative results for the stock market despite investor expectations.

Key takeaways:

  • 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.

Source: https://www.fidelity.com/learning-center/trading-investing/tax-hikes-history