You're watching...
Steel Vine Investments CIO Spencer Patton explains how investors should adjust their investments to boost their portfolio over the next four years.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Okay money is moving forward I'm here to help you lick your wounds again I'm -- -- we may be stock of another four years of these economic policies higher taxes more debt but you can't -- money -- so why there.
Well I don't know whatever it's tries ends up at his chief investment officer at steel -- investments and Spencer.
You have some great ideas let's get right to -- the first one has to do.
With how the tax policy is gonna change on capital gains and on dividends what's your recipe there.
Yes so capital gains taxes are going higher -- -- matter of how much higher they're going did the Smart thing to do whether you own a business -- owns stocks is to sell if you hold from December 31 to January 1 you're taking somewhere between a 5%.
To a 15%.
Yet because you're gonna be paying more taxes it's rising from 15%.
On long term capital gains so first raise some capital sell what has been winning for you.
Yet get out while the getting is getting I think that's what we've seen in the stock market in the past two days.
Let's go to your second thought which has to do with buying a single family home how -- Yeah how women doubt do what Warren Buffett -- that's a that's a great strategy to have -- life and Warren Buffett's that if he could do anything he would go out by 40000.
Single family homes and use them as rentals and I think that makes a lot of sense here because.
If you can get a loan.
Rates are an incredibly low rates you can get rentals which are incredibly attractive right now and get a good passive income for yourself that.
Gives you the chance to have some capital gains as well on the price of the home eventually appreciate.
Eventually when maybe the tax policy changes and that's can be brought that up about Warren -- is going to be talking about that -- in the show another great idea.
To make money -- this real estate play that he's -- -- let's get your third idea in the past -- goals.
Right since the beginning that we've been keeping records there's a great chart that shows that as the monetary base grows so does the price of gold back in 1930 an ounce of gold would buy you a fine -- suit.
Today one ounce of gold will still buy -- -- fine men sit.
And so it's a great protection of your purchasing power gold is an amazing safe haven to be and that's a long term investment.
I don't look at it for first six months to one year as a good place to have your portfolio they gives you some protection.
And then your your final ideas about being defensive in stocks -- me about that.
Yeah I I don't see anything attractiveness as I have to go out and buy stocks right now they're still within 10% of their all time highs even with the pull back.
And so stocks they you may be able to present an argument that says that they're cheap.
But I don't know that that were passed everything that has to come to light.
All the debt debate the fiscal cliff the capital gains taxes there's no compelling reason to buy here over the next two to three months so.
Let -- this past use your assets out of places raise some cash and then you'll be in a much better position to make yourself a lot of money once pointed things.
You know all this thing all of your ideas having common is this idea of sort of hunkering down and -- having this investment over a long period of time.
Why -- you -- down with in the stock market because you have to give President Obama credit that.
You know whether it's been because of the Fed -- easy money or whatever it has bid the stock market has done well so would you buying some favorite stocks in this plan on.
Holding them through the entire next four years.
You know I've always been an advocate of buying stocks that pay high dividends but the dividend -- -- going from 15%.
Up to pay forty and and that takes a huge wind out of the sales -- that that argument so.
You know the timing is everything time -- was good to -- stocks that they -- beginning of Obama now not necessarily so much housing as a great place to because it's cheap.
Yeah its patent great idea thank you so I feel better.
I feel better thank you so much state -- here's.
