Tuesday, February 5, 2013
Preparing for the Fiscal Cliff
Preparing for the Fiscal Cliff - On January 1st, 2013, a combination of spending cuts and tax increases will take hold that impacts virtually everyone and threatens to throw the U.S. economy into a serious nosedive. With each passing day the U.S. economy draws nearer to the impending fiscal tightening of numerous tax breaks currently on the books, along with various new policies increasing taxes and cutting government spending. Virtually all economic models suggest the current law will severely impact the U.S. economy, most likely tipping it toward recession. The purpose of this paper is to explore in some depth the detail around the legislative changes and how one should look at this current risk from an investment strategy standpoint.