July 23, 2014

Wealth Management

Opportunities in Uncertain Times

A depressed stock market holds profits for investors who can overcome their fears.

Barbara Miracle | 10/1/2008

The U.S. budget deficit is expected to hit more than $400 billion this year, low capital gains tax rates are set to expire in 2010 and the economy will be on the front burner for the next president. The bottom line for investors is that taxes are becoming a more important consideration. “It is a very active conversation that we’re having with our clients,” says L. Scott Merritt, senior investment officer and vice president at National City Private Client Group in Sarasota. “There are a lot of moving pieces.”

Money men
[Illustration: Tomasz Walenta/marlenastock.com]
Merritt and a number of other Florida investment advisers are advising clients to consider taking gains and paying capital gains taxes at the 15% rate before the end of the year — in case the new administration and

Congress change that tax rate early next year.

For many investors, of course, the problem is finding gains to realize. The major U.S. stock market indices have suffered double-digit losses so far in 2008. Many international markets are faring even worse. Last year’s high-flying China market is down more than 50%. Even Brazil, which continues to generate buzz, is off 14%.

For investors who can put aside their fears, though, it can be an attractive time to buy.

On the next few pages is some advice that Florida investment advisers were giving their clients in early September.

Tags: Banking & Finance

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