From the Wires
Ken Fisher's Firm Releases Fiscal Cliff Research Alert
Latest guide helps investors understand the potential impact of the fiscal cliff on markets
By: PR Newswire
Dec. 8, 2012 04:33 PM
WOODSIDE, Calif., Dec. 8, 2012 /PRNewswire/ -- Ken Fisher's firm, Fisher Investments, released a new research alert detailing the much-discussed fiscal cliff. The alert provides non-ideological political commentary, with the goal of discussing the main components of the fiscal cliff, Congress's reaction to and incentives to avoid the fiscal cliff, and why market impact will likely be muted whether or not the fiscal cliff occurs.
The piece breaks down the different policies making up the fiscal cliff, namely tax hikes and spending cuts, explaining expected outcome should any of the legislation go into effect. The research alert goes further to examine the likelihood that Congress doesn't successfully avoid the cliff.
"Fear of a false factor is always bullish and this factor is fully artificial," says Ken Fisher in a recent Financial Times article. "Politicians made it and they can (and will) move it. In 2010, Democrats kicked it past the 2012 election. Pushing it past 2014's election just repeats that logic," continues Fisher.
Reelection is most likely a strong driving factor behind Congress's finding a solution. As we saw with 2012 elections, the fiscal cliff can be a powerful tool for fundraising and campaigning. Though political gridlock seems daunting now, the alert discusses the likelihood of compromise—including reasons why politicians on both sides may concede with the other.
The research concludes with a historical example and Fisher Investment's explanation why the fiscal cliff is an unlikely headwind to the US or global economies, markets or investors. The full commentary can be found here: http://www.fi.com/weballey/AlleyLetter.aspx?country=US&alleycode=2H
SOURCE Fisher Investments
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