Buying High Yield on the Pullback
The post-election selloff accelerated Wednesday after President Obama's press conference made clear that both sides are going to dig in their heels before they meet to talk about resolving the fiscal cliff later this week. While some posturing is to be expected, the strident tone of the conversation is not helpful to the market. The president has publicly staked out a position of desiring to double the amount of tax revenue that was agreed to during the last debt talks in 2011. Hopefully, once these negotiations move behind closed doors Friday, the tenor of the conversation will moderate and be less impactful to market volatility.
We are getting closer to an environment where the market can recover, and I even took off some of my short positions just before the market close Wednesday. I also added to some of the high-yielding plays in my income portfolio as these dividend stocks have been hit hard since the election by investors taking profits to avoid higher taxes on dividends and capital gains in 2013....238 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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