Abolishing the IRS Will Cause A Recession?

While I shot this video in late February, 2025, these principles apply regardless of what month it is and no matter who occupies the White House.

We are currently hearing talk about abolishing the IRS and replacing the income tax with a 100% reliance on import tariffs. We are also seeing Elon Musk and DOGE, with the full backing from President Trump, lay off thousands of Federal Employees. Some would put on their partisan hat and say, "Yes. This is going to cause a Bear Market."

We could also argue that February is historically a bad month in the US stock market, so what we are experiencing recently is just seasonal weakness. It's normal and March is typically better. Furthermore, one could argue that history suggests the first year of a president's term is typically pretty good for the stock market.

But none of this is guaranteed. Every major bear market starts as a minor pullback. And the first principle of investing for the long term is making sure your portfolio survives the short term.

We do not invest client capital by interpreting what MIGHT happen. We follow price and respond accordingly.

#AbolishTheIRS #Tariffs #IRS #Taxes #doge #trump #presidenttrump #elonmusk

This video, like all of our videos is made to help you understand the reality of what is happening in our nation's economy and how that translates to our stock and bond markets - without the hype and without an agenda. We are a fee-only asset management firm, managing money for discerning investors. If you would like to learn more, you can find our website below. Likewise, you are welcome to follow our Founder and Chief Investment Officer on LinkedIn.

#EvidenceBasedInvesting
#sp500 #stockmarket #activemanagement #riskmanagement #investmentmanagement #investing #retirementplanning #smallcapstocks

This information is intended to be educational. Hicks & Associates Wealth Management does not provide tax or legal advice. You should consult with a qualified tax, legal or financial professional before making any decisions.

Investment advisory services are offered through Hicks & Associates Wealth Management, LLC (“Hicks & Associates”), an investment adviser registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. More information about Hicks & Associates can be found in Form ADV Part 2 or Form CRS which is available on our website.

Past performance is no guarantee of future returns. Hicks & Associates reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The visuals shown are for illustrative purposes only and do not guarantee success or certain level of performance. This material contains projections, forecasts, estimates, beliefs and similar information (“forward looking information”). Forward looking information is subject to inherent uncertainties and qualifications and is based on numerous assumptions, in each case whether or not identified herein.

This information may be taken, in part, from external sources. We believe these external sources to be reliable, but no warranty is made as to accuracy. This material is not financial advice or an offer to sell any product. There is no guarantee of the future performance of any Hicks & Associates portfolio. The investment strategies discussed may not be suitable for all investors. Before investing, consider your investment objectives and Hicks & Associates charges and expenses. All investment strategies have the potential for profit or loss.