Tax Incentives Trumped by Economic Ones?

The fact that borrowers have been willing to refinance heavily this year even though it reduces the amount of mortgage interest they can deduct suggests that consumers have become more interested in economic incentives than tax incentives, according to Brinker Capital.Chuck Widger, president and chief executive of Brinker, told listeners in a teleconference Dec. 4 that this could diminish somewhat the impact of tax policy as a "wild card" factor influencing the financial markets next year. In addition, Brinker's chief investment strategist, Barker French, forecast a slight, gradual slowdown in housing and more stable interest rates, but said these were unlikely to lead to "major" changes in the financial environment. The teleconference focused on what 2003 holds for the markets and the overall economy. Brinker can be found on the Web at http://www.brinkercapital.com.