Coming into December, everyone was worried about the fiscal cliff and the economic implications for the stock market, myself included. There were also concerns about selling stocks in front of changes in the capital gains tax rate. Many pundits suggested lightening up or even getting out of the market in front of what was sure to be certain collapse. It has not happened. The market has not merely climbed a wall of worry, it has sprinted up the fiscal cliff like Usain Bolt reaching for the tape. In the past month, the stock market has shot up by more than 6% as Santa Claus showed up right on time for Wall Street, giving many hedge fund managers a chance to make their numbers for the year.
One could spend a lot of time wondering what happened to the certain decline in the market. The fiscal issues still loom and, despite all the rhetoric and promises, we are not any closer to an actual solution. Earnings were lackluster at best and economic indicators are still very mixed. Despite all this, sellers never showed up and buyers have had a memorable Christmas party so far this December. I have no idea why all the excitement but, fortunately, I am sticking with buying cheap and selling dear as my market-timing skills are somewhat suspect....592 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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