BROWN & STREZA BLOG
By David Keligian on 5/28/2020 3:39 PM

In his classic book “Think and Grow Rich”, Napoleon Hill said “Every failure brings with it the seed of an equivalent success”. Finding the “seed of equivalent success” seems difficult when we see valuations—regardless of asset class—collapsing before our eyes. With few exceptions, as the U.S. economy has been shut down, the COVID 19 pandemic has hurt business values, real estate values, and investment holdings alike.

However, for those of significant wealth, there is an opportunity to take advantage of the crisis. You can maximize tax savings by acting while asset values are still depressed. In part, this opportunity is based on the consensus view that given the government’s massive spending to avoid a financial collapse, taxes will increase.

In a recent Forbes interview, Leon Cooperman, Chairman of Omega Advisors and a billionaire investor, opined that the recent government intervention in the U.S. economy would result in more government regulation and higher taxes. With respect to the pending presidential election, Cooperman stated: “Regardless of who wins, taxes will have to be raised. Quickly, if Biden wins; slowly, if Trump wins—but taxes have to go up”.