By Michael Pento – Re-Blogged From http://www.Silver-Phoenix500.com
President trump made the following crucial statement on February 9th: “We’re going to be announcing something I would say over the next 2 or 3 weeks that will be phenomenal in terms of tax.” To be sure, the nucleus of the President’s economic plan is the simplification of the tax code. To get this accomplished means everything for the stock market. Without a reduction in tax rates the air compressor that has been blowing up equity prices to near record and unsustainable valuations will explode.
To be a successful investor requires the knowledge that there exists a strong nexus between economics and politics. In just a few short weeks we will get Trump’s details on the tax plan. Understanding what form the tax plan takes shape, or if there is any such plan enacted at all, is essential to your portfolio’s health because it will have a huge effect global currencies, bond prices, commodities and equities.