I get this real time Federal tax collection data every day from the US Treasury’s Daily Treasury Statement. It gives us up-to-the-minute information on withholding taxes, estimated individual and corporate income taxes, excise taxes, and others.
These tax collections tell us EXACTLY what the US economy is doing at any given point in time. There’s no need to wait for the media to report what the manipulated government economic data did last month or the month before.
We have everything we need to know in real time.
Federal Withholding Tax collections were solid in August. They gained nearly 5% versus a year ago, before inflation. That’s a good number, but if you think that’s good news for stocks, I’m here to disabuse you of that notion.
I’ll give you the details on this real time data on the economy, and show you why this good news is really bad news for the stock market and your portfolio.
Here’s what you need to know and exactly what to do next, depending on your portfolio…
By now you have heard about the debt ceiling deal that President Trump made with congressional democrats(hard to believe),which has now been approved by Congress as a whole.
Rupert Murdoch-owned Fox News is calling it a disaster, while Rupert Murdoch-owned Marketwatch is opining that it’s a good thing. Never let it be said that old Rupert doesn’t know how to play both sides of an issue. Fair and balanced.
Let’s also note that this deal is only for three months. We’re going to need to revisit this again in December, though it seems likely that, by then, they’ll have made a deal for the long term that would obviate the need for another debt ceiling impasse.
But we’ll need to monitor closely for any potential changes to market liquidity as the next drop-dead date approaches.
Meanwhile, if you’re confused by all this, join the crowd. I’ll try to sort through the confusion to tell you what it means for you and your money. We’ll look at it through the prism of my LAMPP indicator of market liquidity.
As traders and investors, that’s the only thing that really matters to us: the impact this deal will have on our portfolios.
Here’s what you need to know…