A Pair of Cautious Picks
"The cautious seldom err." – Confucius
It is difficult to be much of an optimist in a market where you cannot go five minutes watching Bloomberg or CNBC without hearing the phrase "fiscal cliff." Despite positive comments from leaders of both parties on Friday, I do not see this issue being resolved without several false starts that have the potential to sharply impact the market. I am being cautious by avoiding stocks that investors will likely be selling through the rest of the year in order to book the lower capital gains tax rates of 2012. I am also staying away from stocks that look stretched from a valuation perspective or are dependent on solid worldwide growth in 2013 which I view as a low probability event....351 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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