From Myth To Reality With David Rosenberg

From Gluskin Sheff's David Rosenberg Myths And Realities Markets always operate at the margin. And what just happened at the political level was an 11th-hour deal that effectively removed the risk of a severe fiscally-induced recession, supposedly beginning this quarter. Whatever odds there were of this occurring, and judging by levels of market valuation and investor sentiment surveys, there was some, but never a whole lot of "fiscal cliff being entertained as a base-case scenario, it is that "some", no matter how small, that was removed from the range of near-term possible outcomes. So after the worst post-Christmas market performance since 1937, we had the largest surge to kick off any year in recorded history. The Dow soared 308.41 points, or 2.4%, to 13,412.55 with all 30 components in the black. The S&P 500 index climbed 36.23 points, or 2.5%, to 1,462.42, again with all ten se...