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2014 has started off on the wrong foot in the stock market after record gains in 2013. The Dow is down more than 100 points while I am writing this blog. One possible reason is tax gain selling. If you made a huge profit in 2013, you can sell while you are still up in January and you don't have to pay capital gain taxes until 2015. I have sold in January a number of times to put off tax issues.
Moreover, the market will probably not measure up to 2013 because of other issues like being overbought. After the 29% gain for the S&P 500 in 2013, we will probably be lucky to see just 10% in 2014. It will be a stock picker's year. As volatile as Facebook (FB) and Twitter (TWTR) are, I believe they will outperform the S&P in 2014. As for a good dividend stock, I recommend Prospect Capital (PSEC). They are paying an annual dividend of around 12%, and you get part of the money each month.
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