Congress Is Secretly Planting the Seeds to Destroy the Bull Market in Stocks

 | May 30, 2017 | 8:07 AM EDT
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Come on guys, get to work. If you don't, the historic stock market rally is going to go up in flames. 

The biggest ideas for overhauling the nation's tax code are either dead or on political life support, according to a report by The Wall Street Journal. At the heart of the issue are Republican lawmakers being unable to find ways to offset the deep tax cuts that many promised on the campaign trail. Shocker that these clowns can't agree on something.

What is taking shape, or so it appears, is a grand bargain on taxes that is far removed from what President Trump rode to office on. Moreover, it's looking like a tax plan that could roil the markets, where hot names such as Action Alerts PLUS charity portfolio holdings Apple (AAPL) , Alphabet (GOOGL)  and Facebook (FB)  , Netflix (NFLX)  and even Walmart (WMT) have rallied on the premise of more cash being put in the pockets of consumers and corporate coffers.

For example, one possibility mentioned in the WSJ story is a temporary tax cut that would expire to comply with rules preventing long-run deficitis. Another is settling for a 25% corporate tax rate as opposed to the 20% backed by House Republicans. President Trump, as we all know, has called for a 15% tax rate. 

One prominent Fed official is already sounding the alarm bell to those who want to listen. 

"Washington does have to deliver at some point [on tax reform] and I think that is a concern going forward, whether the honeymoon period would end at some point and maybe the reality of American politics would settle in. We'll see if that happens or not. I think the jury is out on all that," Federal Reserve Bank of St. Louis President James Bullard said in Bloomberg interview on Tuesday. 

It may be time to cash in some of those Apple gains and buy a CD.

Read This Or Lose Out

Tiger Woods, gee whiz: Golf legend Tiger Woods was arrested for a DUI in Florida over the holiday weekend. Woods says it wasn't alcohol-related, something a police report expected to be released on Tuesday is likely to shed light on. Either way, it's time for Nike (NKE) to eat its contract with Woods, TheStreet reports.

Meanwhile, the Woods mugshot meme game has been tight (and vicious) on Twitter.

The Tiger Woods mugshot meme game. pic.twitter.com/L4udtgrJVh

— Brian Sozzi (@BrianSozzi) May 30, 2017

Trump is stressing out Democratic voters: In fact, Trump is causing so much stress for liberals he may be sending them off to spin class to relax. Yoga and mediation coaches told USA Today they are seeing increased enrollment and fewer dropouts from the annual "New Year's resolution" wave of signups. The American Psychological Association says that stress nationwide is on the rise for the first time in 10 years. Thanks, Prez.

Lululemon (LULU) better be capitalizing on this trend; if not there is something seriously wrong with the yoga apparel maker. 

The iPhone 8 may have hit a snag: The Malaysia Chronicle reports that production of the iPhone 8 is running into problems that could push back the phone's launch by up to three months to October or even November. Two of the main issues revolve around the new device's processor and OLED screen.

Meanwhile, here is what the iPhone 8 reportedly looks like

Watch this sector: The Trump administration is nearing completion of a policy review on Cuba, which will determine how far it rolls back President Obama's engagement with the country, reports Reuters. Cruise lines such as Carnival Cruise Line (CCL) (was first cruise line to travel to Cuba last year), Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) have been some of the first companies to capitalize on Obama's engagement. If Trump goes back to a harder stance on Cuba, look for the cruise line stocks to temporarily lose some steam. 

 

#norwegianskycruise #cuba #havana #portohavana #cruise #cubacruise

A post shared by Reymond Abinader (@reybass83) on

Jim Cramer and the AAP team hold positions in Apple, Alphabet and Facebook for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL, GOOGL, FB? Learn more now.

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