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.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.