Dr. Alex Castaldo
Low Tax States and Stock Performance, from Dr. Alex Castaldo
Performance of stock indexes for 6 low-tax states since 1999:
SPX 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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