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Investment Analysis Clubs / The BMW Method


Subject:  Re: Bargain hunting Date:  11/9/2012  10:37 AM
Author:  kelbon Number:  40769 of 42233

Caution is advised though. The current administration seems intent on raising cap gains and dividend tax rates across the board.

There is little evidence for this. But, it is an assumption that some people are expressing.

If the country goes off the "fiscal cliff" the bush tax cuts will be automatically reversed. However, it's looking more likely (IMO) that some kind of deal will be brokered probably before, or possibly shortly after, the plunge over the cliff. (Unlike the unfortunate lemming, we can climb back up the cliff face).

It is likely that very high income people will be paying modestly higher taxes, but they, after all, are a very small minority.

The fear, and likelihood, of a significant retreat from dividend paying stocks is, I think, overblown. After all, interest rates available elsewhere are scant.

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