Over at Charlie Foxtrot.
[T]hose regular folk who have IRAs and 401ks *will* be affected by this tax hike. Not by paying the taxes, but by suffering the market losses that will occur when this plan is passed…Individuals, corporations, investment houses, etc are all going to lock in gains that they have on their stock positions at the lower tax rate. This will have the overall effect of causing the market to go down.
One might also argue, as our own Larry Kudlow has, that expectations of a capital gains tax increase have been priced into the market already and are holding it back.