Trump Mulls New Tax Cut for the Wealthy
At this stage, it should maybe come as little surprise that the Trump administration is eyeing a bold move when it comes to taxes. Last year's tax cut -- which featured a drop in rates across the board and a massive tax cut for corporations -- was seemingly not enough, as the Trump administration is now considering bypassing Congress to change how capital gains taxes are calculated.
This move is still early stages and has not even been formally proposed yet. But early reporting indicates that under the executive action, investors would be able to adjust the cost basis for their asset/stock for inflation when calculating their capital gain.
For example, if you bought a stock for $10,000 in 1980, and it grew to $80,000 today, under current law if you sold it you would have to pay capital gains taxes on the $70,000 gain. With the proposed new executive action, you could adjust the $10,000 'cost basis' for inflation, which at an annualized 3% rate would mean adjusting your cost basis up to $30,000 or so. That would mean your capital gain is now $50,000 instead of $70,000, which could mean about $3,000 in tax savings.
If the Trump administration decided to move forward, it would be by executive action and not a law on Congress, which also means that the next president could overturn it with the stroke of a pen. Even still, many experts say that Trump taking such an action would be subject to lawsuits and challenges, as many would dispute the US Treasury's ability to change a rule without an act of Congress.
SCHW's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for SCHW turned positive on April 22, 2024. Looking at past instances where SCHW's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 16, 2024. You may want to consider a long position or call options on SCHW as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHW advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 295 cases where SCHW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SCHW broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SCHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.156) is normal, around the industry mean (5.433). P/E Ratio (28.492) is within average values for comparable stocks, (35.241). Projected Growth (PEG Ratio) (1.234) is also within normal values, averaging (2.610). Dividend Yield (0.014) settles around the average of (0.030) among similar stocks. P/S Ratio (7.032) is also within normal values, averaging (105.216).
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Fundamental Analysis Ratings
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a provider of securities brokerage and other financial services
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