The Market Decline Is Due to the Fiscal Cliff ...
Here is a "what if." What if the correction is not due solely to the fiscal cliff? We are all worried about it, and the commentary is never-ending (and I will throw in my next two cents again Monday), so of course that must be the cause, right? As a few folks have pointed out, what changed from a day before the election to a day after? The cliff should already be priced into the market, since its approach was obvious for months. Why would it suddenly matter now?
There are always other forces at work in the market. Perhaps they are equally important? I won't claim to know all the forces in play, but one factor I have been tracking for months is the revision trend in the market-earnings estimate for 2012 and 2013. I discussed this in a post last month, "This Is Probably Unsustainable."...199 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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