The individual investor has been hammered in the last month about the “end-of-year“ Fiscal Cliff issues coming due all at one time. In turn, many people are asking what the markets and economy might do after the November presidential election if Congress and the White House fail to act on this. Here are three dreaded Fiscal Cliff issues all coming due on December 31st:
- Mandatory cuts on defense spending
- The need to increase the Federal debt ceiling
- The temporary Bush tax cuts expiring 12/31/12
Though all of us won’t know the outcome until it happens, we are optimistic that resolutions will be made to prevent the Dec. 31st Fiscal Cliff from happening. We will continue to monitor this issue for our clients. In the meantime, Brian Westbury’s recent “No Recession Yet” video helps explain some of the issues.