The Fiscal Cliff - the series of budget cuts and tax hikes scheduled to go into effect at the first of the year - is expected to bring increased volatility to the markets through the remainder of the year. That's the finding of a recent poll by the financial news service Ignites, which found that 80 percent of all financial advisors expect the political climate to bring more risk to the market.
Some 62 percent think it is already causing volatility, such as the sell-off we saw on the day after Election Day. Another survey, by the investment management firm Lord Abbett, found that three in five of all financial advisors named fiscal uncertainty as their primary financial concern now that the election is over.
Oddly enough, though, this increased volatility has yet to evince itself in the market. The VIX index, the primary measure of the market's volatility, closed yesterday at 19 and change, just under its long-term average of 20.
No comments:
Post a Comment