CIC Wealth's Ethridge on Markets and Strategy

The video discusses the resurgence of the travel industry due to pent-up demand and vaccine mandates. It covers the proposal by House Democrats to raise the corporate tax rate to 26.5% and its potential impact on markets. The analysis suggests that while corporate tax changes are often debated, they may not significantly affect business productivity. However, small-cap companies might face challenges due to their limited resources to navigate tax changes.

What factors are contributing to the expected resurgence in the travel industry?

• Reduction in travel restrictions

• New airline routes

• Pent-up demand and vaccine mandates

• Decrease in fuel prices

What is the proposed new corporate tax rate according to House Democrats?

• 30%

• 28%

• 26.5%

• 21%

How do corporations typically respond to changes in the corporate tax rate?

• They adjust share buyback strategies

• They stop business operations

• They increase product prices

• They reduce employee salaries

What challenge do small-cap companies face with major tax changes?

• Increased competition from large corporations

• Decreased consumer demand

• Inability to afford high-priced lawyers for tax carve-outs

• Lack of access to international markets

Which companies are likely to lead the way in adapting to tax changes?

• Local businesses

• Startups

• Small-cap companies

• FANG stocks and Microsoft