Fox Business - Investing Ahead Of FIscal Cliff
From Streettalk Daily X-Change
December 28, 2012 - 6:59pm
In a "Fox Business Exclusive" interview I discussed with Ashley Websters the issues surrounding the "Fiscal Slope" and how to invest accordingly around the issues that we face ahead. Our focus continues to be on income, and capital preservation, through dividend yields and interest incomes. I discuss these issues along with our expectations that the continued QE programs from the Federal Reserve is likely to push the USD lower giving a lift to oil prices along with oil related stocks.
There are some caveats, however, to this outlook. The first is that the first year of a new Presidential cycle tends to be weak. Secondly, earnings are slowing as the global malaise continues to weigh on companies with large international exposures. Finally, a recession caused by rising taxes and deeper than expected cuts in spending will negatively impact market returns in the next year.
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