Weekly Market Recap – April 15, 2024

With Tax Day on April 15, it’s a good time to explore the relationship between the stock market and taxes and particularly how big capital gains tax payments may impact the stock market. This week’s chart shows an interesting trend: capital gains tax revenues tend to spike in fiscal years when the market undergoes significant sell-offs. In previous major market downturns, such as those in 2000, 2008 and 2022, it’s plausible that capital gains tax realizations could have intensified these sell-offs.

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