Interest rates are never going to rise. I bought some Alaska Communications stock (ALSK) yesterday (8.73% dividend right now) and United Online (UNTD), who owns FTD among others, with a 7.38% dividend. I have been collecting these various high yield stocks, being careful not to buy more than 1000 or 2000 shares in each, and not to be overly concentrated in any market sector or region. And amazingly enough, in spite of the disastrous day the stock market had today, ALSK was unchanged at $2.29/share, and UNTD actually rose to $5.46/share.
I may have to unload my Ruger and S&W stock if it looks like Romney is going to easily win. These stocks are a good capital gain, but do not pay dividends.
Think about it. With the government running trillion dollar deficits it is going to be hard to raise interest rates without the congress critters raising a stink.
ReplyDeleteIf interest rates rise to 5% or so then the yearly interest payment on the debt would head towards a trillion dollars.
Sell before 12-31, capital gain tax changes then.
ReplyDeleteI'm aware of the capital gain tax change -- part of the fiscal cliff.
ReplyDeleteHowever: I haven't held these stocks long enough to take advantage of the lower long-term capital gains tax rate. I may have some long-term losses this year, however, if the stock market goes up dramatically after Romney's victory.
ReplyDeleteObama has been a bonanza for the gun industry. With Romney in office, it is unlikely to keep going up. Maybe ice cream. Mormons are big on ice cream sodas instead of booze.
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