Will there be an exodus from stocks?

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Old 11-07-2012, 10:39 AM
shcisamax shcisamax is offline
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Default Will there be an exodus from stocks?

Who knows where this will go with the negotiating on revenues and entitlements. But would be interested in hearing others thoughts on whether they believe dividend income will in actuality be taxed as ordinary income which could push the tax significantly higher and, if that happens, will the market dump dividend producing stocks for less tax sensitive investments.
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Old 11-07-2012, 10:52 AM
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Originally Posted by shcisamax View Post
Who knows where this will go with the negotiating on revenues and entitlements. But would be interested in hearing others thoughts on whether they believe dividend income will in actuality be taxed as ordinary income which could push the tax significantly higher and, if that happens, will the market dump dividend producing stocks for less tax sensitive investments.
I certainly don't intend on pulling my money out of the market, but I have taken a number of capital gains this year instead of waiting for next year. It can turn into a real problem for me....I am heavily invested in pipeline stocks which have been paying a "return of capital" instead of a "dividend". As such, they have been tax free. If that changes, it could certainly affect the stock price and my income.
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Old 11-07-2012, 11:58 AM
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Default FWIW re Market Down Over 300 Points

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Old 11-07-2012, 12:00 PM
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If you are in it for the long term, this may be a good buying opportunity.
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Old 11-07-2012, 12:04 PM
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Let's remember that the stock market tanked over 5% the day after Obama's victory in 2008. Yet it was up over 69% for his whole term.

Not saying it's going to happen again but just wanted to bring out that fact.
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Old 11-07-2012, 12:30 PM
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If you are in it for the long term, this may be a good buying opportunity.
Better opportunities lay ahead.
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Old 11-07-2012, 12:55 PM
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Including some 4% from Affordable Care Act capital gains and dividends are going to be taxed up to some 43% if the present Admin tax plans proceeds.

As strange as it may seem, the present Admin has been good for Wall Street investors and that is why they contributd heavily for a continuation of this Admin. don't believe it is good for the small investor. Aditionally the Fed's moves are eventually going to have consequences.

Don't think the opposition wants or has the stomach to fight the good fight. so like so many others I have great concerns about the preservation of my savings primarily due to taxes. Like so many my RMD begins in 2013. Up to now it has all been utilizing ordinary income. After the new taxes capital gains and dividends will get a completed different treatment then monthly contribution to your 401k, etc accounts....as I understand it.

Also unsure how businsses will react. Several corporations that have low income employees are quickly moving them to below 28 hours per week in order to avoid pay benefits.

This is my understanding of the situation but perhaps someone has more or different information
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Old 11-07-2012, 01:20 PM
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Default Don't sell

Not selling my stocks and hope whatever is done on Capitol Hill is good for the market. Us retirees need to profit from our investments and while not working! Good thing 401K plans are just taxed at ordinary rates...
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Old 11-07-2012, 02:18 PM
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The market has historically done about twice as well under democrat presidents. Democrats better for Wall Street than Republicans, research shows | Business | guardian.co.uk
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Old 11-07-2012, 02:52 PM
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Taxes are scheduled to go up at least 5 percent at the end of the year (2 percent FICA and 3 percent for the common tax brackets) under current law plus the marriage penalty and Alternate Minimum Tax will hammer a lot of folks. I believe the current plan is to let them expire and then the dems will force repubs to agree to a retroactive reduction provided that it does not include folks in the top tax brackets. This is a big game of chicken and who can say how it will end up. I believe that both parties would want the lame duck session to accept the political heat...but, that will require a degree of common sense and compromise that have not been Washington's strong point for the past few years. Plus, there is the sequester that will cause fiscal chaos. Tighten your belts...it's gonna be a rocky road and after McConnell's speech last night, I'm not feeling real good about it. Let's hope good sense prevails and compromise can be found. I hope this isn't too political...I've tried not to advocate a position.
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Old 11-07-2012, 07:31 PM
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Didn't matter who got elected as we're all going to pay in the future.
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Old 11-07-2012, 08:03 PM
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Quote:
Originally Posted by shcisamax View Post
will the market dump dividend producing stocks for less tax sensitive investments.
Based on today's Dow...all stocks.
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Old 11-09-2012, 02:03 PM
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Quote:
Originally Posted by shcisamax View Post
Who knows where this will go with the negotiating on revenues and entitlements. But would be interested in hearing others thoughts on whether they believe dividend income will in actuality be taxed as ordinary income which could push the tax significantly higher and, if that happens, will the market dump dividend producing stocks for less tax sensitive investments.
Unfortunately my post was completely deleted, i thought it had some insightful comments on the fiscal future for our children and grandchildren. Along with other opinions about the toxic culture of entitlements and the bumpy road ahead for the stock market.Mr. Moderator, this is as good a time as any to make my exodus from this board.When i first posted over 2 years ago there was a group of individuals who were living outside "the bubble" ,that were making perceptive commentary on thought provoking real life issues .They are mostly gone,realizing this board is not that place,i have finally come to that same conclusion.
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Old 11-09-2012, 02:19 PM
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Quote:
Originally Posted by kentucky blue View Post
Unfortunately my post was completely deleted, i thought it had some insightful comments on the fiscal future for our children and grandchildren. Along with other opinions about the toxic culture of entitlements and the bumpy road ahead for the stock market.Mr. Moderator, this is as good a time as any to make my exodus from this board.When i first posted over 2 years ago there was a group of individuals who were living outside "the bubble" ,that were making perceptive commentary on thought provoking real life issues .They are mostly gone,realizing this board is not that place,i have finally come to that same conclusion.
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Old 11-23-2012, 02:32 PM
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I'm an optimist by nature so I think something will be worked out. I'm not taking any profits and I'm not going to sell my good dividend stocks. I'm in for the long term.

What's the alternative?

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