by Lance Roberts, Street Talk Live:
The recent market sell-off has not been about the re-election of President Obama but rather the repositioning of assets by professional investors in anticipation of three key events coming between now and the end of this year – the “fiscal cliff”, the debt ceiling and the expiration of the Transaction Account Guarantee (TAG). Each of these events have different impacts on the economy and the financial markets – but the one thing that they have in common is that they will all be battle grounds between a dividend House and Senate.
While there has been a plethora of articles, and media coverage, about the upcoming standoff between the two parties – little has been written to cover the details of exactly what will be impacted and why it is so important to the financial markets and economy.
Fiscal Cliff: One of the primary reasons for the market sell off since the announcement of QE3 has been in anticipation of the some of the largest tax hikes in the history of America which will take place at the end of the year. These tax hikes will impact families and businesses, the middle class and the rich, the economy and the markets.