Exercise Your Options on the Fiscal Cliff
This whole fiscal cliff situation is funny. The financial media broadcasts a daily countdown to the "cliff" as if the world will undergo a seismic change if no agreement is reached by Dec. 31. You hear many television interviews with financial types who raise concerns about the stock market if we go over a cliff. You hear the talk about how businesses will stop buying, selling, hiring, spending and investing. Yet here we are, with perhaps two more working weeks in December and the market -- collectively thousands of investors voting each day -- is showing no concern, at least for now. By my last count, I believe there were fewer than 25 stocks making up the list of 52-week lows on the U.S. exchanges.
Readers of my columns know I'm not losing any sleep over what happens comes Dec. 31. The Adam Smith in me says let's go over the cliff if that leads to attractive equity valuations. Ultimately, we will get an agreement because voters will only allow their elected officials to grandstand for so long. My investment criteria come down to valuation, or what I am paying for the underlying assets and cash flows....428 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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