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Dr. Alex Castaldo



Low Tax States and Stock Performance, from Dr. Alex Castaldo

Performance of stock indexes for 6 low-tax states since 1999:

               Start   StartDate     Cur   CurDate   PrcChg  PrcChg
Arizona         229.94 12/31/1999  514.94 12/05/2005 123.95% -13.90%
Nevada          Not available
North Carolina  100     1/02/2002  125.70 12/05/2005  25.70%   9.56%
South Carolina  100    12/31/2001  148.33 12/05/2005  48.33%  10.19%
Florida         100    12/31/1999  131.82 12/05/2005  31.82% -13.90%
Texas           178.89 12/31/1999  347.52 12/05/2005  94.26% -13.90%

All five available indices have substantially outperformed the S&P.

Data: We used stock indexes provided by Bloomberg that track the performance of each state. The companies are headquartered in the state (or have a substantial portion of their operations there) and have a minimum market cap of $15 million. We used 12/31/1999 as a start date or the first date the index is available. The indexes include from 45 to 400 companies and are price-weighted indexes.




Alessandro Castaldo, CFA, is a researcher and trader for Manchester Trading. Dr. Castaldo wrote his PhD dissertation on stock market volatility at the City University of New York, and taught courses in finance and options to undergraduates at Baruch College (CUNY) from 1998-2001. He has been associated with Circle T Partners, LP, a $400 million equity hedge fund; and Willowbridge Associates, a $1 billion-plus commodities trading adviser, where his responsibilities included the ongoing refinement of a market-neutral statistically based ("stat-arb") stock selection model.  Dr. Castaldo holds a B.S. in electrical engineering/computer science and an M.S. in management from the Massachusetts Institute of Technology, and worked as a software engineer at SEI Corporation/TMI Systems, Software Research Corp. and Systems Constructs Inc. before entering the finance profession.

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