Friday, November 09, 2012


"The stock market will suffer over the 12-month period, which always happens the year after an election," said Len Tannenbaum, CEO of Fifth Street Finance in New York.
Tannenbaum said the effects of the Federal Reserve's quantitative easing debt-buying program will fade this year after helping boost equity performance throughout Obama's first term.

"The market has been propped up by these sugar highs," he said. "QE half-trillion a year is not sustainable in the long run. The sugar high is going to end because Barack Obama is going to raise revenue and cut entitlements. The combination of the two cannot be good for the economy."
Indeed, economists have been busy cutting numbers for future growth in the wake of Hurricane Sandy as well as the drag effects from whatever solutions are devised to avoid the fiscal cliff.
Goldman Sachs on Wednesday cut its fourth-quarter gross domestic product forecast from 1.9 percent growth to 1.5 percent. The cuts were based on the likelihood that Obama will kill the George W. Bush-era tax cuts for those making above $250,000, and the drag that Superstorm Sandy will have on the economy."

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