A recent survey of investors, the quarterly Bloomberg Global Poll of traders and analysts who subscribe to Bloomberg, has found that most respondents believe that raising taxes will be the inevitable result of America's efforts to reduce the deficit. The survey questioned investors from around the world and 64 percent agreed that it will not be possible to bring down the budget deficit without raising taxes.
From the Bloomberg.com story, "Investors in poll support raising taxes by 2-to-1:"
“With entitlements sacrosanct by virtue of the electoral base (seniors and the poor), the only real option is higher marginal and progressive taxation,” Alfredo Viegas, director of emerging markets fixed-income strategy for Knight Libertas in Greenwich, Connecticut, says in an e-mail.
Russell Rivera, 33, head trader and equity strategist at APB Financial Group in New York, said he prefers the Republican stance because of its focus on cutting spending, though he is among the poll respondents who say a tax increase would have to be included in a deficit-reduction package.
The survey touched on several different topics including which asset class will have the highest return over the next year. Stocks were the first pick at 36 percent followed by 20 percent of respondents who picked commodities to outperform.
Bonds were predicted to have the worst return over the coming year with 35 percent of those surveyed choosing fixed income investments over real estate, at 19 percent.
What asset classes do you believe will be winners in the coming year and do you see a tax hike on the horizon?