Ken Fisher's Firm Releases Fiscal Cliff Research Alert

Latest guide helps investors understand the potential impact of the fiscal cliff on markets

News provided by

Dec 08, 2012, 04:32 ET

WOODSIDE, Calif., Dec. 8, 2012 /PRNewswire/ -- Ken Fisher's firm, Fisher Investments, released a new research alert detailing the much-discussed fiscal cliff. The alert provides non-ideological political commentary, with the goal of discussing the main components of the fiscal cliff, Congress's reaction to and incentives to avoid the fiscal cliff, and why market impact will likely be muted whether or not the fiscal cliff occurs.

(Logo: http://photos.prnewswire.com/prnh/20110708/SF32512LOGO )

The piece breaks down the different policies making up the fiscal cliff, namely tax hikes and spending cuts, explaining expected outcome should any of the legislation go into effect. The research alert goes further to examine the likelihood that Congress doesn't successfully avoid the cliff.

"Fear of a false factor is always bullish and this factor is fully artificial," says Ken Fisher in a recent Financial Times article. "Politicians made it and they can (and will) move it. In 2010, Democrats kicked it past the 2012 election. Pushing it past 2014's election just repeats that logic," continues Fisher.

Reelection is most likely a strong driving factor behind Congress's finding a solution. As we saw with 2012 elections, the fiscal cliff can be a powerful tool for fundraising and campaigning. Though political gridlock seems daunting now, the alert discusses the likelihood of compromise—including reasons why politicians on both sides may concede with the other.

The research concludes with a historical example and Fisher Investment's explanation why the fiscal cliff is an unlikely headwind to the US or global economies, markets or investors. The full commentary can be found here: http://www.fi.com/weballey/AlleyLetter.aspx?country=US&alleycode=2H

About Fisher Investments

Fisher Investments is an independent, privately-owned money management firm founded in 1979. Fisher Investments maintains two principal business units, Fisher Investments Institutional Group and Fisher Investments Private Client Group, which serve a global client base of diverse investors, including over 100 large institutions and 25,000 high net worth individuals. Founder and CEO Ken Fisher has written the Forbes "Portfolio Strategy" column for over 28 years, has written 9 books on investing and personal finance (4 of which are bestsellers). In 2010, Ken Fisher was named by Investment Advisor magazine as one of the 30 most influential industry individuals in the last 30 years (Thirty for Thirty, May 2010). For more information visit http://www.fisherinvestments.com/.

SOURCE Fisher Investments