This Is How Kevin O'Leary Is Preparing For Tax Season
(Kitco News)Â -Â Every tax-paying investor needs to be able to make back those taxes, according to Shark Tank star and chairman of O’Shares ETFs, Kevin O’Leary. And the best way to do that is to be invested in high quality, cash-flow generating assets.
“The instability in the market and now the earnings disappointments are causing major volatility in a season where you’re actually paying taxes and you have to make it back. I always like to say that about paying tax, you’ve got to get it back. You want to be in quality in 2019,” O’Leary told Kitco News.
As of February 1st, 46% of the companies in the S&P 500 have reported results for Q4 2018, with 70% of companies reporting earnings above estimates, which is below the five-year average, according to FactSet.
Share price performance has been good so far in 2019, with the S&P 500 up 9% year-to-date.
Equities markets reacted positively in 2018 to the Trump tax cuts, which saw an average household earning $75,000 to $100,000 benefit $1,310 from the tax bill, according to the Tax Policy Center.
“The theme for 2019 is quality, quality, quality, balance sheet, balance sheet, balance sheet. You should own things that generate cash flow because that is what the market is going to put a premium on,” O’Leary said.