Fiscal Cliff Averted as Congress Agrees on Nothing Substantial: Markets Soar
I am awed, AWED by Congresses reaction to the 7% popularity it "enjoys" which turned the fiscal cliff and sequestration into a mini series. For now, joesixpac actually got taken care of, and should be happy, although in about four to six weeks the kicked can comes rumbling back in something called debt ceiling, but we always worry about that about ten minutes before we get to gridlock again so we're off to the races.
For in spite of the $2000 POP most will pay as payroll taxes return to pre roll down levels circa 2007, the Bush tax rates remain for those making less than $450K, and that is adjusted income levels. And that includes increased taxes on dividends, but only to those making more than what, $250K? Again, adjusted gross. Why even the Fed govt family, one retired field grade sucking $65K out of retirement pay, GS 15 making 165K, spouse a GS 14 making 135K, that's only $365K and they've only got to worry about those bond funds and ETF's taking a hole out of those non IRA cash accounts. I was talking to my DC friends again.
So the market should take off like a scalded cat, and those willing to have their necks on the line deserve a gambler's bet that paid off.
The rest of us are stuck trying to be prudent in the big casino, and it takes a lot of work to miss a lot of opportunity, I tell you.
PS: Looks like Mitt ROBME however, gets about a $3M hit out of his dividend income of $12M, talk about REALLY losing the election he didn't want anyway (I am quoting his kid there)