gold stock comparison info, page-12

One would think by the posts on HC and the behaviour of the Australian
stock market that we were the 51st state of the USA.

- We chart gold un USD
-We talk of fiscal cliff as if it were next to Bondi Beach.

The Bush tax concessions which expire at the end of the year simply means
that US taxpayers pay 15% tax on shares capital gains and dividends.
If this concession lapses at the end of December, US taxpayers will pay
their top rate of tax (up to 35%) on these investments. If we got the same deal in Aus, no one would want to put money in super.

The US markets are now factoring-in these impending tax changes into share
prices, particuluarly the dividend payers; hence the the drop in the US indices.

This has got little to do with the Australian Stock market and our tax system, yet, at least in the short term, we slavishly follow the Yanks.

On the contrary, the normalisation of the tax treatment of shares and share income in the US should make the Australian Stock market internationally
more competitive, or at least partially level the playing field.

And as the Americans say, "Have a nice day"

Moorookamick