Articles - J.P. Morgan comments on the US fiscal cliff deal

 Dan Morris, global strategist at J.P. Morgan Asset Management, comments on the US fiscal cliff deal:
 "The biggest surprise about the (temporary) resolution of the fiscal cliff dilemma was the strength of Republican party support: 85 votes in the House of Representatives and 40 in the Senate, despite previous pledges by many to never vote for a tax increase. This bodes well for the upcoming debate about spending cuts, the other half of the fiscal equation. The tax increases alone will not resolve the country's deficit problems and cuts will have to be made in order to bring expenditures closer in line with revenues. The next two months will continue to provide political drama, but should be less significant for the markets as any cuts will be implemented only slowly.

 "The extension of unemployment benefits for another year will help support domestic demand, while increased taxes on wealthier Americans will impact investment decisions. With consensus estimates for GDP growth at just 2%, there is potential in our view for positive surprises. Earnings revisions for US corporations continue to rise and equity valuations are good (if not as good as they are in some emerging markets and parts of Europe). Liquidity from the Federal Reserve will only increase and we anticipate further, if modest, gains in US equities this year."

Back to Index

Similar News to this Story

Inflation risk premium why think about it now
An inflation risk premium (IRP) is nothing new. Market-implied inflation has historically been higher than actual realised inflation. There is only
Workplace emergency savings
Nest Insight event dedicated to workplace emergency savings, where we’ll share the latest findings from our research trials and hear from other practi
How to identify the key issues early in reserving
This article looks at how an analytical approach to reserving can help actuaries focus on what really matters, right at the start of the process. We s

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.