No Harm, No Foul
A current pressing topic for investors is what, if anything,
to do about the "Fiscal Cliff."
I learned long ago that taking
actions based on expectations about what Congress will do or even has done is
often a losing proposition. Congress routinely acts in ways that puzzle even
its top leaders. Legislation frequently is so complex that its true impact
isn't apparent for years.
Nonetheless, there are times, as at present, when
thinking about possible Congressional action could prompt one to take actions
that will be beneficial regardless of
what Congress does. As always, taking action in your financial affairs requires
analysis of your unique circumstances. You should not act because of the
hysterical guidance from pundits.
When Congress last faced this type of
situation, in the debt ceiling negotiations last year, the outcome and the
market reaction surprised nearly everyone. For now, make sure that if you take action,
you're doing no harm to your long-term interests regardless of what emerges
from Capitol Hill.