New York, NY (PRWEB) December 06, 2012
In a recent Investment Contrarians article, editor and financial expert George Leong reports that from the end of September to mid-November, Bloomberg notes that 59 companies belonging to the Russell 3000 Index announced special cash dividends, versus 15 companies in the same timeframe in 2011. (“Special Dividends Surge Fourfold as U.S. Tax Increase Looms,” Bloomberg Businessweek, November 19, 2012.) According to the Investment Contrarians expert, the move to initiate special dividends is not a surprise, and he expects the payments to continue over the next few weeks unless a resolution is reached regarding the fiscal cliff, which is threatening dividends with major tax hikes.
With only 32 days remaining to resolve the fiscal cliff, and growing weary of the term “financial crisis,” Leong urges Congress to take action: “… just deal with the financial crisis stalemate and work out a deal that makes both parties happy, and slows down the frivolous printing of money that has allowed America to spend endlessly and create the financial crisis that is now lurking.”
While political action regarding the fiscal cliff may be at a standstill, Leong notes that market action is increasing, as more and more U.S. companies declare “special dividends.” He explains that the reason for these dividends is to try to help investors avoid higher dividend taxes in 2013 if the fiscal cliff is allowed to move forward.
Leong adds that the market is also seeing a rise in profit taking, as investors dump their profits now, and avoid what will likely be higher taxes on capital gains and investments going into 2013.
The Investment Contrarians expert concludes by advising investors to try to receive some dividend income this year at the lower tax rates, assuming the fiscal cliff and financial crisis are coming.
To see the full article, and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing, and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.