'Zombie Economy' May Give Markets a Scare in October
"Traders expect October to give the markets a scare, starting with news on the economy and jobs in the week ahead.
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Edging Toward Fiscal Cliff
The outcome of the election and the resulting handling of the so-called “fiscal cliff” are seen as keys to the performance of markets in the fourth quarter, and to the economic outlook.
Fiscal cliff is used to describe the double whammy to the economy that could come from the dual expiration of Bush-era tax cuts and automatic spending cuts Jan. 1, if the lame duck Congress does not act. The outcome on taxes and spending is expected to be different, depending on who wins the White House and Senate in November.
“The number of times we’re going to see the candidates and hear about the candidates’ platforms does increase as you get closer and closer to the election so it does become more central to the market’s concerns,” said Adams. “I just think at this particular time, we have earnings right around the corner, and with the situations with Greece and Span.. There’s just so many macro issues to deal with. The election is one, not first and foremost.”
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The Republican ticket is widely favored on Wall Street, since Romney’s stand on taxes and spending are viewed as more favorable for the economy and markets. A Republican sweep, while not apparent in the polls, would also be expected to bring a swifter resolution to the fiscal cliff."
Published: Friday, 28 Sep 2012
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