11th
Let’s not speculate…
I recommend banning speculation from the financial markets. No micro-term holdings. Use the financial markets for what they are best at - systems for long term, stable business capital generation and investor wealth growth. In return, remove the capital gains tax for equities held for a long-term period of time, say 5 years. For commodities, which require a much shorter instrument life cycle, scale down the time frame - 1 month, 3 months, 6 months, a year, or restrict trading to parties directly related to producers and buyers. Businesses can stop focusing on quarter-by-quarter performance and execute stable growth strategies. Investors can make rational, informed decisions based on economic and business fundamentals rather than media mob panic psycholgy and speculators manipulating specific issues or trading on insider information. The theoretical advantage of speculators is that in rare cases of an illiquid market they can provide liquidity. But more often the case is that they drive up prices in bidding maneuvers which translate to higher consumer costs. Speculation also creates a locked in short-term mindset in the market which impacts business planning, monetary policy, and credit availability. Wall Street must stop being a casino. Speculators can take their money to Vegas.
