Fiscal Cliff Fight Investment Losses

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http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-fight-investment-losses

Fiscal Cliff Fight Investment Losses

Despite the very public agreement to extend middle class tax cuts and increase taxes on the very rich, the fiscal cliff fight continues. Our concern in this investment column is fiscal cliff fight investment losses. One bright spot for those who believe in the right for parents to pass their wealth on to their heirs is that the $5 million inheritance tax exemption, plus COLA adjustments, passed along with the other tax bills. However, the issue of economic uncertainty continues and here is where we believe fiscal cliff fight investment losses are likely to occur. Supporters of low taxes commonly say that high taxes drives investment offshore. That may be true but our belief is that uncertainty is a greater deterrent to long term investment. Thus we believe that fiscal cliff fight investment losses will be related to the fact that many with money are not sufficiently sure of the future to engage in long term investing. Fundamental analysis becomes a joke when congress repeatedly threatens not to pay the bills that it has caused the country to accumulate. A joke going the rounds is that the US Treasury should mint a $1 Trillion platinum coin and use it to pay for a large chunk of US debt. What is a little frightening is that no one seems to understand that we are already printing money to keep the economy going.

Where Will Fiscal Cliff Investment Losses Occur?

The stock market will likely suffer if Congress and the White House cannot come to an agreement limiting US spending and agreeing to pay necessary debts. Last time around the perfect US government credit rating took a hit. To the extent that those in charge cannot get a handle on spending, the dollar will continue to fall over time and everyone with money in the bank or a paycheck will see the value of their holdings and earnings decrease with inflation. The dollar may not fall versus the Euro but it may suffer when traded against the currencies of the BRICS nations or even countries like Colombia whose currency did the best of all against the dollar in 2012. When Americans start investing in foreign stocks or engage in foreign real estate investments as a result of the politicking in Washington, it means fiscal cliff fight investment losses at home.

Can We All Just Learn to Agree?

The United States is badly in need of consensus. Better put, the nation is badly in need of leaders who govern by consensus. This gets back to our assertion that fiscal cliff fight investment losses will come from uncertainty instead of from a specific set of policies that may be enacted. The nation has come through a large number of economic and political scrapes, global wars and a civil war. It all works out over time if individuals, families, and investors have a sense of a fair playing field and a sense that what the rules are today will be the rules tomorrow.

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Fiscal Cliff Fight Investment Losses

  1. 1. Despite the very public agreement to extend middle class tax cuts and increase taxes on the very rich, the fiscal cliff fight continues.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  2. 2. Our concern in this investment column is fiscal cliff fight investment losses.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  3. 3. One bright spot for those who believe in the right for parents to pass their wealth on to their heirshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  4. 4. heirs is that the $5 million inheritance tax exemption, plus COLA adjustments, passed along with the other tax bills.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  5. 5. However, the issue of economic uncertainty continueshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  6. 6. and here is where we believe fiscal cliff fight investment losses are likely to occur.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  7. 7. Supporters of low taxes commonly say that high taxes drives investment offshore.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  8. 8. That may be true but our belief is that uncertainty is a greater deterrent to long term investment.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  9. 9. Thus we believe that fiscal cliff fight investment losses will be related to the facthttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  10. 10. that many with money are not sufficiently sure of the future to engage in long term investing.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  11. 11. Fundamental analysis becomes a jokehttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  12. 12. when congress repeatedly threatens not to pay the bills that it has caused the country to accumulate.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  13. 13. A joke going the rounds is that the US Treasury should mint a $1 Trillion platinum coinhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  14. 14. and use it to pay for a large chunk of US debt.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  15. 15. What is a little frightening is that no one seems to understandhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  16. 16. that we are already printing money to keep the economy going.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  17. 17. Where Will Fiscal Cliff Investment Losses Occur?http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  18. 18. The stock market will likely suffer if Congress and the White House cannot come to an agreementhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  19. 19. limiting US spending and agreeing to pay necessary debts.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  20. 20. Last time around the perfect US government credit rating took a hit.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  21. 21. To the extent that those in charge cannot get a handle on spending,http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  22. 22. the dollar will continue to fall over time and everyone with money in the bank or a paycheckhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  23. 23. will see the value of their holdings and earnings decrease with inflation.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  24. 24. The dollar may not fall versus the Euro but it may sufferhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  25. 25. when traded against the currencies of the BRICS nations or evenhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  26. 26. countries like Colombia whose currency did the best of all against the dollar in 2012.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  27. 27. When Americans start investing in foreign stockshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  28. 28. or engage in foreign real estate investmentshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  29. 29. as a result of the politicking in Washington,http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  30. 30. it means fiscal cliff fight investment losses at home.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  31. 31. Can We All Just Learn to Agree?http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  32. 32. The United States is badly in need of consensus.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  33. 33. Better put, the nation is badly in need of leadershttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  34. 34. who govern by consensus.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  35. 35. This gets back to our assertion that fiscal cliff fight investment losseshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  36. 36. will come from uncertainty instead of from a specific set of policies that may be enacted.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  37. 37. The nation has come through a large number of economic and political scrapes, global wars and a civil war.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  38. 38. It all works out over time if individuals, families, and investorshttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  39. 39. have a sense of a fair playing field and a sensehttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  40. 40. that what the rules are today will be the rules tomorrow.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  41. 41. In the meantime, look at consumer stocks as an anchor during tough times,http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  42. 42. dividend stocks like power companies for steady return,http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  43. 43. and do not let fiscal cliff stock worries give you and ulcerhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  44. 44. as it may just work out in the endhttp://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses
  45. 45. And, always do your own fundamental analysis.http://www.profitableinvestingtips.com/investing-trading/fiscal- cliff-fight-investment-losses

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