Your investment plans for 2013 should be in place before year-end. If you need to come in and see me to get it done, let’s do it. The issues surrounding the year-end changes to tax codes and spending shouldn’t be dictating what you need to do.
Please don’t let it,
Think Quality Not Cliff
Equities: Focus on Quality
“There have been a variety of recommendations by strategists on which sectors and stocks are likely to be beneficiaries of a President Obama reelection. Yet many of these groups and issues have already been bid up, in our opinion, and are therefore less attractive. One approach that we believe will never go out of style – regardless of party in power or tax policy embraced – is the focus on reasonably priced quality.
Whatever the compromised conclusion of the current fiscal cliff standoff, higher taxes on dividends will likely be included, in our opinion. Yet, that doesn’t mean that investors should avoid dividend-paying stocks. First, it is becoming increasing difficult to find stocks without a yield, as 80% of the S&P 500 now pay a dividend. Second, the tax on dividends, at worst, will be equal to that on bonds, in our opinion. And with the yield on bonds near historical lows, and the economy likely to pick up the pace rather than slip back into recession, we believe there is greater risk in owning bonds than dividend-paying stocks.
While we still recommend stocks that pay a dividend, we recommend not “yielding” to temptation. We suggest an investor look to the past, the present and the future when selecting stocks.”
~Sam Stovall, Cheif Equity Strategist, S&P
Opinions expressed above do not necessarily reflect views of LPL Financial. The Linkous Group and LPL Financial are not affiliated with S&P. Dividends are not guaranteed and all stock investing involves risk including potential loss of principal. No single strategy guarantees success so be sure and contact your advisor before implementing any investment plan. The S&P 500 Index is unmanaged and cannot be directly invested in. Past performance is no guarantee of future results.