NEW YORK ( ETF Expert) -- So you thought that the biggest fallout over higher taxes for the wealthy might be the selling of stock assets. Indeed, investors sitting on monster capital gains in Apple (AAPL) have liquidated scores of shares in the culture-changer company.
Yet, a wide variety of riskier categories have held up nicely, including high-yield corporate bonds, preferred stock, dividend stocks, consumer defensive and consumer cyclical stocks. Any selling in these categories is more attributable to fiscal cliff uncertainty than an actual outcome with higher tax rates for $250,000+ families.
Perhaps ironically, a safer haven area on the risk spectrum has taken a bit of a recent nose-dive. Municipal bond ETFs are experiencing uncharacteristic declines on speculation that U.S. leaders will agree to reduce income tax breaks on muni debt. (Is this what Republicans mean by "closing loopholes?")
According to John D. McKinnon and Andrew Ackerman of the
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