Bill DeShurko warns of the fiscal cliff in

by Michael Tarsala

It’s been said that the U.S. economy could drive off the “fiscal cliff at year’s end.

The challenges include:

  • The expiration of Bush era tax cuts.
  • Automatic spending cuts scheduled for Jan. 1, 2013.
  • An ever-increasing U.S debt load that could threaten the country’s sovereign credit rating.
  • All of the above that may also be coupled with falling corporate profits and a loss of consumer confidence/ has a thought-provoking post that walks through the real (and overhyped) threats posed by the cliff for both consumers and investors.

Bill DeShurko, manager of the Dividend and Income Plus Model, offers up this advice:

Move to low-volatility investments, buy dividend-paying stocks and have an exit strategy.

“There is absolutely no reason to lose another 30-40% of your investments for the third time in the past 12 years, DeShurko says. “Buy and hold strategies will once again wipe out wealth that individuals can no longer afford to lose.”

It’s a pretty good read. Check it out here.