In response to:

No Cliff Calamity: That’s What Stocks Are Correctly Predicting

true liberal Wrote: Dec 12, 2012 6:04 AM
I think the markets are currently playing chicken. The want the Christmas bull market and will push it up until near the end of the year? Why, there are still a lot of small investors that will follow the market as it goes up not understanding that it is the big players that really make it go. The market rise will draw more money and investors and that is when the big boys will take their profit. 2 reasons: 1. Christmas profit 2. Cash in and avoid the big rise in taxes next year
Despite all the media hullabaloo about the fiscal cliff and a potential recession if none of the Bush tax cuts are extended, stock markets have behaved calmly throughout this whole period. In fact, as of this writing today, the Dow is up 100 points.
I’m going to guess that stocks, in their wisdom, are correctly sniffing that there will be no calamitous falling off the cliff. By that I mean there will be no $500 billion tax hike, which would be an economy killer.
Instead, after speaking with prominent Republican House and Senate members, I have come to believe the following:...