Our Capital Market Strategists are back with the December edition of their Market Roundup. The U.S. markets have gone from worrying about last month’s election to worrying about the fiscal cliff. But that’s just one piece of a much larger picture.
From this month’s Roundup:
Despite the negative moves in the stock market after the presidential election, stocks at the end of November were actually up—but barely. Although it may be tempting to ascribe a lot of the market moves to the ongoing debate about the fiscal cliff, that would be ignoring many other factors driving the markets, for example: developments in Europe, China’s manufacturing beginning to accelerate, the impending elections in Japan, and the ongoing problems in the Middle East. By comparison, the fiscal cliff is more of a divot than a major driver.