Quote:
Originally Posted by Dedicated Mind
po. I am not a financial expert, but this claim sounds totally bogus. if the stock market goes down because capital gains taxes go up, then stock prices are artificially high and less wealthy investors are being prevented from owning more stock. the value of stock has nothing to do with whether rich people have more money to invest. (just thinking without knowing) whaddya respond to that?  |
Okay, seriously. A down market does effect investment. If the market is down it's difficult to sell new stock and in turn delays businesses from expanding, ie., hiring new employees and buying new product. So, really, a rich person is not able to expand his business and it does also affect his investing just as much as the unwealthy investor. Of course, there are tricks to investing in a down market for either investor.
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