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Jul 07 2024

Wealth Effect: The Good And The Bad

  • Jul 7, 2024

The wealth effect created by rising stock prices puts the Fed in a bind. The market recovery since late 2022 has stimulated receipts from capital gains taxes, and should continue to do so for the next several months. But this recovery in tax receipts has still left the 12-month federal deficit at an astounding 6.1% of GDP, about 2 1/2 points wider than at its best level of the recovery in mid-2022.


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About The Author

Doug Ramsey / Chief Investment Officer & Portfolio Manager