When stocks look good, they get faded. When they look like hell, they melt up again. I’ve elected to remain put with my positions because moving money around has been an exercise in futility. As I speak now, the market looks like shit. Who knows, twenty minutes from now it might look great?
It all comes down to The Fiscal Cliff and how much taxes are going up. Remember, Wall Street hates higher taxes and companies will suspend dividends in order to avoid them. We are looking at a potential albatross for stocks, one that can sink investor sentiment for good. Let’s face it, Wall Street hasn’t been very accommodating to the average investor, with its fucked up flash crashes, accounting fraud and incredibly corrupt IPO practices. Now the government is going to punish the old man in the wheeled chair, who no longer derives income from bank held CDs because rates are 0%, by raising taxes on dividend income!!?!
Holy shit, I can’t think of a worse way to ruin the market. It’s like they’re doing it on purpose, in order to funnel money out of equities back into real estate.
All I know is this: never trust policy makers. All they do it create and destroy bubbles. Make sure you have at least 30% cash before the year ends, maybe sooner. I am not buying a damn thing without selling something first.If you enjoy the content at iBankCoin, please follow us on Twitter