NEW YORK ( TheStreet) -- I may have the contrarian opinion on impact of fiscal cliff, but the stalemate in Washington has ended the Santa Claus rally that began from the market lows of Nov. 16.Strength from Nov. 16 into Dec. 18 can be attributed to the anticipation that a deal to prevent the fiscal cliff could be reached so that Santa would not be forced to take up cliff diving. Today the odds of getting a meaningful compromise have declined significantly and in my judgment a cliff deal that simply kicks the can down the road is not what investors, businesses and consumers are looking for. Going off the cliff is not priced into the stock market, and a weak compromise deal has already been priced into recent market strength.
Santa Claus Takes Up Cliff Diving
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