Join our community of smart investors

The investment cases for ASOS and Next

Online retail is a theme for this week's round-up plus thoughts on corporation tax.
The investment cases for ASOS and Next
  • Governments are starting to go after corporate profits
  • Online fashion retailers ASOS and Next are discussed in this week's review
  • Dunelm, Lookers, Saga and Homeserve are also analysed

 

There’s always something else for investors to worry about. While there have been lots of cheers to governments splashing the cash to revive economies, the question as to who is going to pay for it is gaining attention.

It looks as if companies are going to be asked to pick up a large share of the bill.

Despite the talk of things such as wealth taxes, politicians know deep down that they are unpopular and difficult to implement. Raising income taxes is a vote loser and is understandably a road that those currently in power don’t want to go down.

Companies and their lobbyists may have a lot of power, but they don’t vote in large numbers. They also arguably have the broadest backs to bear the brunt of the costs of the pandemic. Going after companies is also popular – or at least not unpopular – with lots of voters.

Download PDF