This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What's This 'Fiscal Cliff' Anyway? Do I Need to Worry?

"Despite the problems, the United States is still one of the bright spots of the world," he said. "It's just a matter of growth slowing, and if in fact growth is slowing you need to reposition differently."

James Paulsen, chief market strategist at Wells Capital Management in Minneapolis, said that whatever the Washington negotiations produce, investors should count on getting less stimulative help from the government.

"We're experiencing the fiscal cliff already, it's just in infinitesimally small ways, eating away at us every day," said Paulsen, who advocates not only buying dips but also selling into strength in what he expects to be a volatile environment where the S&P 500 finishes the year at 1,500, despite all the turbulence.

For Randy Frederick, director of trading and derivatives at Charles Schwab, a likely market pullback over the summer brings with it a chance to employ options strategies like covered calls and collars, both of which attempt limit downside.

"When you talk about a fiscal cliff...it's probably a little early to worry about those issues," he said. "But we are due for a pullback for a number of different reasons."



--Written by Jeff Cox at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%
TSLA $226.03 0.00%
YHOO $42.51 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs