Companies with low tax rates
Governments across the world are highly indebted. Corporate margins are extremely high. Corporations lobby of course, but they don’t vote. I think companies with sub-normal tax rates could be targeted and I would look closely at any stocks you own which have low tax rates and ask yourself what the valuation would look like if they had to pay 30% tax.
Corporate Profit Margins have Already Peaked, but Remain High
I am not saying this will happen but It’s definitely possible and actually probable in the medium term. You can still own such stocks of course, but allow something for this risk in the valuation and ask yourself if the low tax rate is derived from high investment or washing royalties through an offshore centre.
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