Category Archives: Opinion

Have the markets already priced in a fall off the fiscal cliff?

Fiscal Cliff

Well here we are on December 28 with only a couple of trading days left in 2012, and it appears extremely unlikely that US government officials will reach any sort of agreement before the end of the year. Sharp tax increases and spending cuts will automatically be implemented next week until an alternate deal can be forged. The markets have been in a steady decline since October, as investors correctly predicted that this would happen. Markets are about 5% lower than the highs seen back in September / October, having rebounded from the 8% decline weathered in November. Continue reading