The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

A tax to boost share prices?

       
James Jeffords

Washington was in a tizzy last month after the sudden defection from the Republican party of senator James Jeffords of Vermont. Jeffords' historic move tipped control of an evenly divided US Senate to the Democrats and it came within a whisker of changing the fate of the Bush administration's tax proposals. But Jeffords decided to stay in the Republican fold for a few more days until Congress could finish work on that all-important bill. Big bucks had been riding on the outcome for Wall Street.


This political shocker came on the heels of the recent run-up in share prices. Last year's bubble, it seems, really hadn't burst after all, but transformed itself instead into some sort of living, breathing organism. The thing apparently was just exhaling when stocks went skidding in February and March. Now the question is: what has it been breathing in?


Share prices have defied old measures of value - P/E ratios, dividend discount models and the like - for years.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree