MUS - The Stock Market Doesn't Care About Rising Inequality - But It Will Soon

• The market has pushed higher over the past decade, on the backdrop of low rates, massive stimulus, and growing cash levels among the investor class.
• While a rising market is generally favorable for the country, the gains have been uneven. Government policies to combat the recession and pandemic disproportionately helped corporations and high net worth.
• With a change of regimes in Washington, I expect Congress to make decreasing the wealth gap a priority, and they will find an ally in President Biden. This will mean higher taxes.
• Tax-exempt munis are one way to play higher taxes. Beyond that thesis, higher taxes could lead to more investments in other areas. One sector I expect to see renewed focus is Health Care.

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