Daily commentary: The fiscal cliff

I owe you all a post on the European elections. And my weekly will probably cover that topic since it is the most important one this week. For now, I just wanted to highlight the coming fiscal cliff from 31 December to 2 January when all of the US temporary tax and stimulus measures expire. The set up for having these things expire risks a new recession and such a downturn would be ugly, especially given the elevated level of US S&P earnings expectations and the relative P/E ratio of the US market. In Europe, people are worried about the political situation and stocks have not risen as they have in the US. So the potential for a real bear market is there.

Read Stan Collender's piece for more on the fiscal cliff. The way he portrays it, we are looking at a second recession in 2013 as...


As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More