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   The stock market retreated recently on        fiscal cliff stock worries, according to the        news.http://www.prof...
   So, what the Heck is a Fiscal Cliff?http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
   Fiscal Cliff is a political term.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
   The fiscal cliff implies a rapid economic        disaster upon letting the Bush era tax        cuts expire,http://www....
   allowing mandatory Federal spending        cuts to occur, and seeing an expanding        budget deficit.http://www.pro...
   The fact is, folks, there is no cliff in fiscal        cliff.http://www.profitableinvestingtips.com/investing-trading/...
   There is the risk of an economic decline        and even a recession if the issues at        hand are not dealt with i...
   However, the worst case scenario is a        slow fiscal slide, which does not have        the political pizzazz of “f...
   Nevertheless, the market is worried and        oft times market sentiment diverges from        sound fundamental analy...
   Before letting fiscal cliff stock worries ruin        our day, let us think about how the        various aspects of th...
   cliff might affect intrinsic stock values        and margin of safety, the touch stones of        sound long term inve...
   To the extent that the issue is overblown        there may opportunity to pick up good        stocks at low prices.htt...
   To the extent that congress and the        president resume the willful Capital Hill        circus of last year it cou...
   time to take fiscal cliff stock worries at        face value and get out of the stock        market.http://www.profita...
   The mighty US dollar suffered a        downgrade last year due to the comedy        on Capitol Hill over raising the d...
   The US Federal Reserve has been buying        US Treasuries which has had thehttp://www.profitableinvestingtips.com/in...
   effect of driving down interest rates and        forcing bond buyers into the corporate        market.http://www.profi...
   Interest rates on treasuries will likely go up        and prices of treasuries will likely go        downhttp://www.pr...
   if the adults take over on Capitol Hill and        work for the good of the nation and not        their particular pol...
   The long term results of coming to grips        with the Federal Deficit with mixture of        tax increaseshttp://ww...
   and even handed budget cuts, could        spell a long term economic rally the USA        and the world as well.http:/...
   Long term investors are well advised to        watch to see if the current negotiations        come to fruition of if ...
   in fiscal stimulus generated low interest        rates, devaluation of the US dollar, and        ever more staggering ...
   Success in long term investing comes        from accurately picking the winners and        avoiding the losers.http://...
   If the US gets its fiscal house in order        investing in gold will become less        attractivehttp://www.profita...
   To the extent that the fiscal slide occurs        precious metals may get a boost.http://www.profitableinvestingtips.c...
   During the upcoming period of        uncertainty options contracts may hold        the key for conservative investors....
   Puts can act as insurance on stocks that        you believe to be at risk for a fall.http://www.profitableinvestingtip...
   Calls will hold your place in line, at the        current price, for stocks that you believe        might rise.http://...
   A practical approach during times of        market uncertainty is to search for        undervalued stocks and profit a...
   For more insights and useful information        about investments and investing, visit        www.ProfitableInvestingT...
 Fiscal Cliff Stock Worries
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Fiscal Cliff Stock Worries

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http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries


Fiscal Cliff Stock Worries

The stock market retreated recently on fiscal cliff stock worries, according to the news. So, what the Heck is a Fiscal Cliff? Fiscal Cliff is a political term. The fiscal cliff implies a rapid economic disaster upon letting the Bush era tax cuts expire, allowing mandatory Federal spending cuts to occur, and seeing an expanding budget deficit. The fact is, folks, there is no cliff in fiscal cliff. There is the risk of an economic decline and even a recession if the issues at hand are not dealt with in a responsible manner. However, the worst case scenario is a slow fiscal slide, which does not have the political pizzazz of “fiscal cliff.” Nevertheless, the market is worried and oft times market sentiment diverges from sound fundamental analysis, taking profits with it. Before letting fiscal cliff stock worries ruin our day, let us think about how the various aspects of the so called fiscal cliff might affect intrinsic stock values and margin of safety, the touch stones of sound long term investing. To the extent that the issue is overblown there may opportunity to pick up good stocks at low prices. To the extent that congress and the president resume the willful Capital Hill circus of last year it could be time to take fiscal cliff stock worries at face value and get out of the stock market.

Hopes of Fixing the Fiscal Mess

The mighty US dollar suffered a downgrade last year due to the comedy on Capitol Hill over raising the debt ceiling. The US Federal Reserve has been buying US Treasuries which has had the effect of driving down interest rates and forcing bond buyers into the corporate market. Interest rates on treasuries will likely go up and prices of treasuries will likely go down if the adults take over on Capitol Hill and work for the good of the nation and not their particular political constituencies. The long term results of coming to grips with the Federal Deficit with mixture of tax increases and even handed budget cuts, could spell a long term economic rally the USA and the world as well. Long term investors are well advised to watch to see if the current negotiations come to fruition of if the nation will continue to wallow in fiscal stimulus generated low interest rates, devaluation of the US dollar, and ever more staggering debt for future generations to deal with.


Practical Approaches

Success in long term investing comes from accurately picking the winners and avoiding the losers. If the US gets its fiscal house in order investing in gold will become less attractive. To the extent that the fiscal slide occurs precious metals may get a boost. During the upcoming period of uncertainty options contracts may hold the key for conservative investors. Puts can act as insurance on stocks that you believe to be at risk for a fall.

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Transcript of " Fiscal Cliff Stock Worries"

  1. 1.  The stock market retreated recently on fiscal cliff stock worries, according to the news.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  2. 2.  So, what the Heck is a Fiscal Cliff?http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  3. 3.  Fiscal Cliff is a political term.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  4. 4.  The fiscal cliff implies a rapid economic disaster upon letting the Bush era tax cuts expire,http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  5. 5.  allowing mandatory Federal spending cuts to occur, and seeing an expanding budget deficit.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  6. 6.  The fact is, folks, there is no cliff in fiscal cliff.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  7. 7.  There is the risk of an economic decline and even a recession if the issues at hand are not dealt with in a responsible manner.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  8. 8.  However, the worst case scenario is a slow fiscal slide, which does not have the political pizzazz of “fiscal cliff.”http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  9. 9.  Nevertheless, the market is worried and oft times market sentiment diverges from sound fundamental analysis, taking profits with it.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  10. 10.  Before letting fiscal cliff stock worries ruin our day, let us think about how the various aspects of the so called fiscalhttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  11. 11.  cliff might affect intrinsic stock values and margin of safety, the touch stones of sound long term investing.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  12. 12.  To the extent that the issue is overblown there may opportunity to pick up good stocks at low prices.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  13. 13.  To the extent that congress and the president resume the willful Capital Hill circus of last year it could behttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  14. 14.  time to take fiscal cliff stock worries at face value and get out of the stock market.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  15. 15.  The mighty US dollar suffered a downgrade last year due to the comedy on Capitol Hill over raising the debt ceiling.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  16. 16.  The US Federal Reserve has been buying US Treasuries which has had thehttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  17. 17.  effect of driving down interest rates and forcing bond buyers into the corporate market.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  18. 18.  Interest rates on treasuries will likely go up and prices of treasuries will likely go downhttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  19. 19.  if the adults take over on Capitol Hill and work for the good of the nation and not their particular political constituencies.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  20. 20.  The long term results of coming to grips with the Federal Deficit with mixture of tax increaseshttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  21. 21.  and even handed budget cuts, could spell a long term economic rally the USA and the world as well.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  22. 22.  Long term investors are well advised to watch to see if the current negotiations come to fruition of if the nation will continue to wallowhttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  23. 23.  in fiscal stimulus generated low interest rates, devaluation of the US dollar, and ever more staggering debt for future generations to deal with.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  24. 24.  Success in long term investing comes from accurately picking the winners and avoiding the losers.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  25. 25.  If the US gets its fiscal house in order investing in gold will become less attractivehttp://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  26. 26.  To the extent that the fiscal slide occurs precious metals may get a boost.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  27. 27.  During the upcoming period of uncertainty options contracts may hold the key for conservative investors.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  28. 28.  Puts can act as insurance on stocks that you believe to be at risk for a fall.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  29. 29.  Calls will hold your place in line, at the current price, for stocks that you believe might rise.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  30. 30.  A practical approach during times of market uncertainty is to search for undervalued stocks and profit as their share prices rise.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
  31. 31.  For more insights and useful information about investments and investing, visit www.ProfitableInvestingTips.com.http://www.profitableinvestingtips.com/investing-trading/fiscal-cliff-stock-worries
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