Christmas Comes Early for Income Investors

The market continued to sink post-election on Thursday as confidence wanes that both sides can come to agreement quickly to deal with the fiscal cliff. Stocks that had huge run-ups in the past year and high-dividend stocks have led the decline as investors sell to avoid higher capital gains and dividend taxes in 2013. Investors are justifiably rattled, as the market's fate seems to be in the hands of politicians.

But this pull back provides opportunities. I particularly like the position of income investors who were prudent or fortunate enough to keep plenty of cash on hand. Many high quality income plays are selling 10%, 15% or even 20% lower than they were two weeks ago. For yield players, it is as if Christmas came early. This is especially true if you hold income investments in tax-deferred vehicles since the higher dividend taxes on the way are not relevant....293 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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