Matt’s Market Insights by Matthew Kerkhoff -
“Repatriation: No Matter What, Investors Win”
With tax reform now a done deal, investors and analysts alike are scouring over what the new policies will mean, and what companies will do with all this newfound wealth. One of the major changes now allows companies to bring back the cash they’ve been holding overseas at a lower tax rate of 15.5%.
This process, dubbed repatriation, could have a huge impact on the bottom lines of companies. Recent estimates by Goldman Sachs suggest that American companies may be sitting on nearly a trillion dollars of overseas cash. Other estimates put that figure as high as $2.5 trillion.