The stock markets have been wrong of late. That’s what the world’s largest investors say. They say that global markets wrongly trimmed $1 trillion in value out of worry about the ability of the US to avoid the fiscal cliff when economies around the world are improving.
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These money managers say fears of the fiscal cliff are overblown. From jobs to housing to consumer confidence to international trade, things are looking up for the world’s largest economy.
And in China, exports rose 10% in September and October. That’s a big improvement from the paltry just-under-3% rise for the two months prior.
Money managers with the most at risk look to increase holdings of securities in expanding economies instead of preparing for another US-led recession.
The American people want cooperation, common sense, and action. On November 13, President Obama will host labor leaders and the chiefs of some of the largest US companies. He will also hold his first news conference since June.
Obama called for extending current tax cuts
for those with annual incomes under $250,000 and increasing tax rates for those making above that threshold.
House Speaker John Boehner said that tax rates must not go up but he also refused to detail where would be willing to compromise.
Mohamed El-Erian, CEO of PIMCO, noted that no one in their right mind would push the US into recession. Not only must the fiscal cliff be avoided, but it must be done in a way that points the US forward with the wind behind its back