Fiscal Cliff Stock Worries Guide

 The stock market retreated recently on
fiscal cliff stock worries, according to the
news.

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

 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.


 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.


 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.


 Calls will hold your place in line, at the
current price, for stocks that you believe
might rise.


 A practical approach during times of
market uncertainty is to search for
undervalued stocks and profit as their
share prices rise.


 For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.


Fiscal Cliff Stock Worries Guide

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