Many financial advisers follow Warren Buffett’s lead, adopting a buy-and-hold mentality and urging jittery clients to shrug off scary headlines to achieve long-term gains. But what if those headlines signal a threat to a long-term investment plan?
Case in point: On April 22, U.S. stock markets reacted poorly to reports that President Joe Biden might propose a capital gains tax increase to 39.6% for Americans earning more than $1 million. That would nearly double the current base rate of 20%.
Whatever proposal is made, Senate lawmakers surely will haggle over it. The outcome remains fuzzy, but it’s entirely possible that