Fiscal cliff anxiety has increased since May 22 when the Congressional Budget Office spread some gloom and doom by citing a potential 2013 recession.
As we reach 2012's midpoint, we still have November's presidential election and a ticking clock for Congress and the president to reach an agreement on policy issues by year's end.
The likelihood of this doesn't look good. That's why now's the time to prepare for the potential effect from the fiscal cliff.
What is the Fiscal Cliff?You can thank Federal Reserve ChairmanBen Bernankefor coining the phrase.
Fiscal cliff refers to the coinciding action of tax increases and spending cuts that will activate on Jan. 1, 2013 unless Congress and the White House agree and take some action to either delay or change them.
Should these two actions marry, you'll watch $7 trillion tagged onto the nation's debt over the next decade, or about $500 billion next year, according to CNN.
How will investors be impacted?