Fisher: Don’t Fear The “Fiscal Rolling Plain”

Top strategist Kenneth Fisher says the “fiscal cliff” drama is far overblown, and that the overwrought fears about budget cuts and tax hikes are actually a bullish sign. “If there’s no deal, it’s not a crisis. The fiscal cliff is fake,” Fisher says in an interview with Forbes. “A political invention, arbitrarily put at January 1 because it was politically expedient in 2010 to stick it there. Now it’s politically expedient to push it past… Read More

“Cliff-Sensitive” Stocks with Upside

In his latest column, Validea CEO John Reese takes a look at stocks that might be getting hit too hard by “fiscal cliff” fears. “What if we don’t go off the cliff, or we do, but the impact on the stock market isn’t as severe as expected. Despite what you may have heard, those are both legitimately possible scenarios,” Reese writes. “And if they do play out, the stocks that are supposed to get… Read More

Buffett on the Fiscal Cliff

Warren Buffett says that even if the U.S. goes over the “fiscal cliff”, he doesn’t think it will lead to recession. “I don’t think that’s going to happen,” Buffett tells CNNMoney. He says that even if it takes a couple months after the New Year for Congress and the President to reach a “cliff” deal, the U.S. will continue to grow. “We are not going to permanently cripple ourselves because 535 people [in Congress] can’t… Read More

Sonders: Don’t Sell Housing Rebound Short

Charles Schwab’s Liz Ann Sonders says that a rebounding housing market will have more of an impact than many believe it will have on the economy. “People are still underestimating the impact that this is going to have,” Sonders said at the Schwab Impact 2012 conference, CNBC reports. “What people are underestimating is the ripple effect of confidence.” Sonders says that “just about every metric in housing is starting to turn here,” pointing to builder… Read More

El-Erian On How To Handle The Fiscal Trouble

PIMCO’s Mohamed El-Erian says policymakers trying to address the country’s fiscal problems should focus on getting businesses and individuals to put the “ton” of cash now sitting on the sidelines to use, both via investment markets and capital spending. “If you make that your objective, you’re going to move not only just on fiscal reform but on labor market reform, on credit market reform, and on housing reform, and that’s what this country needs,” El-Erian tells… Read More

PIMCO Boss: Years of Balance Sheet “Rehabilitation” Ahead

PIMCO Chief Operating Officer Doug Hodge says that monetary easing alone isn’t enough to repair the U.S. economy, and that America is “in for a slow period of balance sheet rehabilitation” that will take years. “What we’ve learned though is that monetary policy alone, it’s necessary but it’s not sufficient,” Hodge tells FOX Business Network. “And that’s why we’re in the third round of quantitative easing. So we’re in for a slow period of balance… Read More

What History Tells Us About Stocks & The Fiscal Cliff

Many pundits and investors have been forecasting big trouble for the stock market if the U.S. goes off the “fiscal cliff” at the end of the year, and tax rates jump on income, capital gains, and dividends. But the firm of top strategist James O’Shaughnessy says history tells another story. Looking at data going back to 1926, O’Shaughnessy Asset Management looked at how the stock market has fared during times of varying tax levels. “Our… Read More

Sonders: Market to Meander; Stay Calm

Charles Schwab Chief Investment Strategist Liz Ann Sonders says the U.S. economy has a lot going for it, and thinks investors should remain calm. “I happen to be a pretty big optimist long-term on our economy,” Sonders tells Bloomberg BusinessWeek. “I’m by no means a perma-bull, but I think there are so many things that the U.S. economy has going for it that much of the rest of the world doesn’t, including labor flexibility and… Read More