Wednesday, December 19, 2012

The Stock Market Looks Like A Gigantic Powder Keg, Ready To Blow




BI’s Sam Ro writes: Stocks have held up remarkably well lately considering all of this talk about the fiscal cliff and how going over the cliff could hack multiple percentage points off of GDP growth.

However, the apparent dismissal of this impending, high-risk event with a non-zero probability may have turned the stock market into a giant powder keg.  The S&P 500 closed at 1,435 today, which is near a three-month high and just 40 points from a post-crisis high.

Meanwhile, complacency is arguably high as reflected by the low levels in the volatility index....
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Read more: http://www.businessinsider.com/stock-market-fiscal-cliff-downside-risk-2012-12#ixzz2FZdjuyFW

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