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Meb Faber highlights that federal taxes diminish long-horizon equity wealth by more than one-third.
He points out that dividend taxation has historically been the primary mechanism impacting this reduction, referencing analysis by Andrew Ang at Columbia.
Faber has previously cautioned that speculating in U.S. stocks carries risk throughout the year, citing Mark Twain’s view on market hazards in one past commentary. He has also chronicled how the U.S. stock market persisted through major crises of the 20th century in historical analysis. These observations frame his perspective on the long-term impact of tax policy on equity returns.