Reading the Data Through the Storm
Below all the economic noise caused by Hurricane Sandy, the economy is still showing slow but steady improvement.
With this week's economic reports rendered nearly useless by Hurricane Sandy, the media had a field day focusing on the fiscal cliff. One website has gone as far as posting a clock counting down until we hit said cliff, right down to the second.
When things get to this point, one has to believe that the worst of the possible outcomes is quickly becoming embedded in securities prices. By the way, the consensus now seems to be that we will indeed go over the fiscal cliff on the first of the year. Then after each side makes its points, some type of compromise will be reached within the first couple of weeks of the calendar year, before the impact of the fiscal cliff really kicks in. Personally, I think calmer heads will prevail, a limited portion of the cliff items will be implemented, and a majority of these issues will be kicked down the road until at least mid-2013. Given my desire for slow and gradual changes, that isn't the worst possible outcome.