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Stock Mar 2013 - "Stock Market: Life Post-Fiscal Cliff"

Stock Mar 2013 - "Stock Market: Life Post-Fiscal Cliff"

Stock Mar 2013 - "Stock Market: Life Post-Fiscal Cliff"

Excerpt


Stock Market: Life Post-Fiscal Cliff



The risk of an imminent fiscal crisis was averted when lawmakers agreed on some $600 billion in spending cuts and tax increases in January. This doesn’t mean we are out of the woods quite yet. We still have to address the long-term U.S. debt problem and the thorny issue of entitlement reform. However, the progress made to date on Capitol Hill has helped lift consumer sentiment and rekindle investor optimism. Accordingly, January was a good month for stocks, with funds continuing to flow from money markets into equities. Although continued flurries of concern over sequestered spending – a law that requires lawmakers to agree on some $85 billion in spending cuts over the next six months – might cause turbulence in the markets, many investment pros are feeling somewhat bullish.


 


 


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