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All right brace yourself the stock market gains this year could become I'm done by the end of the year -- For more than one reason other than just being skeptical about the health of the stock market you've got two very important change is coming out of Washington.
Elizabeth MacDonald is here with the details and -- that high line.
That's right -- the bush rates expire on dividend tax basically dividends and capital gains.
Those taxes will go up BMO capital JPMorgan Chase all sorts of investment banks and bankers are talking about this.
And they're worried that the four in the fourth quarter the stock market gains could go away could become -- done.
Because people start selling to lock in cheaper capital gains before the rates go up.
And dividend stocks why don't dividend stock why not just move to a growth stock of that dividend taxes gonna go up.
Go -- more high powered growth stock that is something a lot of -- been pouring into dividend.
The companies like this -- -- at this what.
And you know and did did you experts have a outlet with a report showing its 680 billion dollars in dividend payout since.
-- to a 2011 that's double what it was in 2008.
Now please I mean I was gonna get hurt.
Doesn't get hurt by the attacks were at rates going up on dividend and capital gains.
Look at this 68%.
Attack -- returns reporting dividends.
Look at this a 100000 in income or less is as -- -- -- young so that's about 70%.
Of those tax returns are in that crowd a 100000.
Or less crowd not say something it's accorsi older senior citizen 65 plus they basically get.
Most of the dividend dividends they report them on their tax returns so this is something that's on the radar screen down there on Wall Street.
Electric utilities season the company's got to watch out for electric utilities consumer staples and and what's -- -- -- -- America had technology.
Industrials -- -- -- I was so twelve I had to total stranger that over the weekend.
You but what's gonna happen with the market based on the election would you buy before or after the election you know how do you notice it.
If you're gonna raise taxes on capital gains and dividends it's very clear that's bad for the market yeah people are gonna get out because it just changes your rate of return your very clearly not gonna buy as many stocks.
So you know vote for the person is not going to do that.
Yeah that's right about now -- something these guys are ball parking at what's -- hit going to be.
15% downturn in the fourth quarter -- -- contended discount that but it's something that's certainly got the attention of wall -- for certain --
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