Fiscal Cliff 2013- Money Morning - Only the News You Can Profit From.
DJ Industrial Ave Theoretical (m)
N/A: DJIA
May 17
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Last price15,354.40Prev Close15,233.22
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Change121.18% Change0.8%
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Open15,234.75Volume34,407,100
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Day Low15,183.26Day High15,408.00
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Bid0.00Ask0.00
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52 Wk Low12,101.4652 Wk High15,354.40
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Market Cap0ExchangeN/A
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Last price15,354.40Prev Close15,233.22
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Change121.18% Change0.8%
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Open15,234.75Volume34,407,100
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Day Low15,183.26Day High15,408.00
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Bid0.00Ask0.00
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52 Wk Low12,101.4652 Wk High15,354.40
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Market Cap0ExchangeN/A
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Last price15,354.40Prev Close15,233.22
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Change121.18% Change0.8%
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Open15,234.75Volume34,407,100
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Day Low15,183.26Day High15,408.00
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Bid0.00Ask0.00
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52 Wk Low12,101.4652 Wk High15,354.40
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Market Cap0ExchangeN/A
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Last price15,354.40Prev Close15,233.22
-
Change121.18% Change0.8%
-
Open15,234.75Volume34,407,100
-
Day Low15,183.26Day High15,408.00
-
Bid0.00Ask0.00
-
52 Wk Low12,101.4652 Wk High15,354.40
-
Market Cap0ExchangeN/A
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Last price15,354.40Prev Close15,233.22
-
Change121.18% Change0.8%
-
Open15,234.75Volume34,407,100
-
Day Low15,183.26Day High15,408.00
-
Bid0.00Ask0.00
-
52 Wk Low12,101.4652 Wk High15,354.40
-
Market Cap0ExchangeN/A
-
Last price15,354.40Prev Close15,233.22
-
Change121.18% Change0.8%
-
Open15,234.75Volume34,407,100
-
Day Low15,183.26Day High15,408.00
-
Bid0.00Ask0.00
-
52 Wk Low12,101.4652 Wk High15,354.40
-
Market Cap0ExchangeN/A
-
Last price15,354.40Prev Close15,233.22
-
Change121.18% Change0.8%
-
Open15,234.75Volume34,407,100
-
Day Low15,183.26Day High15,408.00
-
Bid0.00Ask0.00
-
52 Wk Low12,101.4652 Wk High15,354.40
-
Market Cap0ExchangeN/A
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Top News / U.S. Economy4
Why Warren Buffett Doesn't Fear the Fiscal Cliff, and How He'd Fix it
Warren Buffett, CEO of Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B), is doubtful that Congress can get its act together and compromise on the fiscal cliff before the Dec. 31 deadline.
However, Buffett expects a deal to be reached shortly after that deadline, and he is not concerned with going over the infamous fiscal cliff.
"The fiscal cliff does not enter into my long-term investment decisions... and it wouldn't surprise me if we go past January 1," Buffett said on CNBC's Squawk box Wednesday morning. "[If that happens] I don't think the world will come to an end."
Buffett is in the minority with that sentiment, as investors have been fretting over the fiscal cliff since the election and will continue to do so until Washington finalizes a deal.
To continue reading, please click here...
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Fiscal Cliff Meeting: Here's What U.S. CEOs Expect from Obama
In what looks like a "Who's Who Among America's Corporate Leaders," some of the biggest and best U.S. CEOs are meeting with U.S. President Barack Obama today (Wednesday) in Washington to discuss the fiscal cliff.
With just 35 days left for congressional lawmakers to hammer out a deal before Americans face the largest tax increase in history, the pace has quickened in the race to avert falling off the cliff.
Those present at White House meeting included business leaders in healthcare, finance, commodities, entertainment, construction and consumer products.
Among the attendees: Lloyd Blankfein, Goldman Sachs Group Inc. (NYSE: GS); Muhtar Kent, The Coca-Cola Co. (NYSE: KO); Marissa Mayer, Yahoo! Inc. (Nasdaq: YHOO); Doug Oberhelman, Caterpillar Inc. (NYSE: CAT); Ian Read, Pfizer Inc. (NYSE: PFE); and Patricia Woertz, Archer Daniels Midland Co. (NYSE: ADM).
U.S. companies want Washington to act now as many are already feeling the pre-effects of the fiscal cliff. None want to experience the full impact, which the Congressional Budget Office warns will thrust the U.S. economy back into recession next year.
In anticipation, scores of businesses have laid off workers and shelved expansion projects. The uncertainty, Bank of America Corp. (NYSE: BAC) CEO Brain Moynihan recently explained, is holding back the nation's recovery from the Great Recession.
Putnam Investment CEO Robert Reynolds recently told The Wall Street Journal, "The greatest stimulus is certainty. You don't know what your tax rate is next year, you don't necessarily know what you're going to be paying in health care, capital gains, dividends. They all have a tremendous impact on the way people act."
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OECD Sees These Threats Beyond Fiscal Cliff 2013
- Jeff Uscher, Contributing Writer
At a press conference announcing the release of its new Economic Outlook report, the Organization for Economic Cooperation and Development (OECD) issued a stern warning to the U.S. to resolve the impasse over fiscal cliff 2013 or risk falling into recession, possibly dragging the rest of the world economy down with it.
"The US "fiscal cliff,' if it materializes, could tip an already weak economy into recession, while failure to solve the euro area crisis could lead to a major financial shock and global downturn," said OECD Secretary-General Angel Gurra. "Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the United States, in Europe, and elsewhere."
The OECD expects growth in the U.S. to decline from 2.2% in 2012 to 2.0% in 2013 "provided the "fiscal cliff' is avoided," then increasing to 2.8% in 2014. U.S. unemployment is expected to decline from 8.1% in 2012 to 7.5% in 2014, using a harmonized measure of unemployment that allows comparisons between countries.
Although the consequences of failing to resolve fiscal cliff 2013 loom large, the European debt crisis was cited as the main risk to global economic growth. Gross domestic product (GDP) growth in the Eurozone is expected to improve from -0.4% in 2012 to -0.1% in 2013 and a positive 1.3% in 2014.
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How to Prepare for Recession 2013
U.S. President Barack Obama recently met with congressional leaders in attempts to carve out a way to avoid falling off the quickly approaching fiscal cliff.
If no deal is reached, President Obama and scores of economists warn, the U.S. is destined to plummet into a recession in 2013.
Money Morning Global Investing Strategist Martin Hutchinson cautions that even if lawmakers avoid the fiscal cliff by the most likely scenario of raising taxes on wealthy Americans while leaving the majority of the budget deficit status quo, the short-term outlook for the health of the U.S. economy is far from rosy.
"U.S. economic growth has been held back in the last few years by the blizzard of regulations coming out of Washington, and there's reason to believe there is an especially heavy storm of them in the next few months, having been held up before the election," said Hutchinson.
And despite the easy monetary policies of Fed Chief Ben Bernanke, and the latest round of QE3 (dubbed QE Forever), "the U.S. economy is not going back to robust growth in 2013," Hutchinson added. Creating more money, he said, will just increase inflation.
"In the long run, a recession is coming," Hutchinson warns.
To continue reading, please click here...
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This New Fiscal Cliff Report Issues $200 Billion Warning
A fresh fiscal cliff report from the White House today (Monday) has predicted that falling off the cliff will deliver a damaging blow to U.S. consumer spending.
The report from the White House's National Economic Council and Council of Economic Advisers cautioned that consumers will rein in spending next year to the tune of some $200 billion should Congress let taxes increase for middle class American families come 2013.
"American consumers are the bedrock of our economy, driving more than two-thirds of the overall rise in real GDP over 13 consecutive quarters of economic recovery since the middle of 2009. And as we approach the holiday season, which accounts for close to one-fifth of industry sales, retailers can't afford the threat of tax increases on middle-class families," the report stressed.
The report is the latest ammo that U.S. President Barack Obama is using to sway lawmakers to go along with his plan to extend tax cuts for American families making less than $250,000 a year, while raising tax rates on the wealthiest 1%, which Republicans vehemently oppose.
"The president has called on Congress to act now on extending income tax cuts for 98% of American families and not hold the middle-class and our economy hostage over a disagreement on tax cuts for households over $250,000 per year. The Senate has passed this bill and the president is ready to sign it," the report read.
With the Dec. 31 fiscal cliff deadline quickly approaching, Democrats and Republicans continue to butt heads over tax issues, as well as government spending and entitlement expenditures. If the two sides don't come to some kind of deal and we fall over the fiscal cliff, a 2013 recession is likely.
To continue reading, please click here... -
9 Ways To Save Your Portfolio From The Fiscal Cliff
Many investors believe that a fiscal cliff "dive" is inevitable.
It's hard to disagree.
Our politicians have refused to do anything but kick the can down the road to date.
The blame game started mere days after the election and it's highly unlikely that we'll see anything other than more foolishness out of Washington.
So what do you do about it?
Simple: First, you need to protect your savings from getting destroyed by the fiscal insanity. Second, you should look to reposition your portfolio with the goal of making a hefty profit. We call this one-two punch... Survive & Conquer the Fiscal Cliff.
In a minute we're going to show you exactly how to do both...
But first, here's why you need to pay very close attention, even if a miracle happens and Washington comes to an agreement.
To continue reading, please click here...
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How to Prepare for a Stock Market Pullback
After getting slammed by a sharp post-election stock market pullback, many investors are trying to figure out if this is the beginning of a market crash or simply a needed correction.
Either way, legendary investors, hedge fund managers, and some of the largest investment firms are calling for a decline through the end of the year and possibly into 2013, depending on the resolution of the fiscal cliff.
On Monday, Goldman Sachs Group Inc. (NYSE: GS) Chief U.S. Strategist David Kostin restated his 1,250 year-end target for the Standard & Poor's 500, which is roughly 10% below yesterday's close.
"Uncertainty swirling around the 'fiscal cliff' that must be resolved by year-end, the pending jump in capital gains taxes at the start of 2013, and the debt ceiling that will be reached in late February represent clear and present downside risks to the market in the near-term," Kostin wrote to clients, effectively summarizing the bears' case for a continuation of the recent downturn.
Besides Goldman, Marc Faber has predicted a 20% market plunge will occur during President Barack Obama's second term. Peter Schiff recently called QE3,"Operation Screw" because "everybody's pretty much screwed if they own dollars," and even technical indicators are hinting at an upcoming slide.
This doesn't mean panic or run - in fact, those are the worst things you could do. Instead, follow these steps to prepare for a stock market pullback.
To continue reading, please click here...
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Fiscal Cliff 2013: For Energy Investors It's Going to Be Like Fishing in a Barrel
There are 26 trading days and counting until the U.S. reaches the fiscal cliff.
That's how many trading sessions remain before massive (and automatic) tax increases and expenditure cuts take effect.
And in the roll up to this non event(more in a moment), oil prices and energy shares have been hit hard. But as you'll see, it won't be for much longer.
To put some sanity into this overwrought conversation here are three key points up front.
First, the cliff will never take place. Pundits are treating this like some definitive confirmation of a Mayan prophecy.
CNN has what amounts to a daily "cliff dive," giving us the next eagerly awaited pearl of wisdom on yet another calamity to befall if the mess hits. And CNBC is handing out "Rise Above" buttons with great fanfare to oblige politicos to move away from partisan rancor.
Great! The three-piece suits inside the Beltway would never have figured out what needed to be done without a button. They all know they will kick something (a can, an accounting device, a legislative reprieve) further along before the deadline hits.
This is a grand nonevent; it will never take place, especially after the election we just experienced.
With an impending budgetary crisis looming, the Senate Republican leadership put defeating Obama as their number one goal (a "let's show everybody that the real issues are less important than politics" approach if there ever was one).
They lost.
On the other side of the aisle, the Democratic leadership cast the situation as a "saving of the American dream," after failing to curb an unemployment trend or reassure small business about prospects.
They lost.
So here we are back where we started before the costliest campaign season Americans have ever witnessed.
Except, this time, something big has changed. And it's all because of the electorate.
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Fiscal Cliff 2013: Bernanke Outlines Dangers of No Deal
Expressing optimism, concern and urgency, U.S. Federal Reserve Chairman Ben Bernanke delivered a firm message on the fiscal cliff Tuesday to Capitol Hill.
He pressed lawmakers to strike a deal to avert the fiscal cliff, and to permanently stop playing politics with the federal debt limit.
Doing so, the central bank chief said, would mean the next year would be "a very good one for the American economy."
Speaking to the New York Economic Club, Bernanke said, "Uncertainty about how the fiscal cliff, the raising of the debt limit and the longer-term budget situation will be addressed appears already to be affecting private spending and investment decisions, and may be contributing to an increased sense of caution in financial markets."
To continue reading, please click here...
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Five Ways to Turn the Fiscal Cliff Into an Outstanding Investment Opportunity
Many investors believe that a fiscal cliff "dive" is inevitable.
Even with the prospect of a deal lifting the markets yesterday, I can't say I disagree.
The blame game has already started and it's highly unlikely that we'll see anything other than more foolishness out of Washington. And so far all they have done is kick the can down the road to date.
So what can you do about it? Believe it or not, crises like these can be an ideal time to buy stocks. And gold. And oil. And certain kinds of bonds. And more.
The death of financial markets is almost always highly overrated.
Adding insult to injury, fiscal cliff or not, trying to time the markets is an exceptionally bad idea - 85% of all buy/sell decisions are incorrect, according to Barron's. Further, Dalbar data shows that the return of an average investor trying to time the market is a pathetic 1.9% per year versus the S&P 500 return of 8.4% over the same time period.
Over 20 years, that's the financial equivalent of taking a 342% hit in lost performance.
With that in mind, here's a five-point plan for turning the fiscal cliff into an outstanding opportunity.
1) Get ready to go bargain hunting
With Europe entering another recession and some parts of the world flirting with a protracted slowdown that's going to be more like a managed depression, things couldn't be more uncertain.
While I don't personally like this reality any more than you do, from an investment perspective I'm very happy to pick through the oversold stocks and go bargain hunting.
Why?
Because history's rearview mirrors show that fear, panic, crisis and stress are all classic signs associated with opportunity -- and profits.
This is particularly true for choices related to energy, resources and certain kinds of technology - all of which the world needs, as opposed to wants, and all of which are backed by billions of dollars flowing their way whether we go over the fiscal cliff or not.
2) Stress test yourself
Never mind the big banks or Wall Street's hooligans, take a good hard look in the mirror.
Many investors are completely unprepared for the psychological impact of our nation going over the edge. And you don't want to be one of them.
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