This Day On The Street
Continue to site
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

Imminent Fiscal Decisions By Political Leaders Will Have Profound Consequences On Capital Markets And Investment Portfolios, According To BNY Mellon-Sponsored Report

NEW YORK , Dec. 5, 2012 /PRNewswire/ -- The US and European economies will face significant challenges in 2013 and beyond regardless of the scope and direction of imminent fiscal decisions globally, according to a new BNY Mellon-sponsored report from the Economist Intelligence Unit (EIU). The report, Fiscal Decision Time for Political Leaders, examines and details the diverse opinions of leading market watchers and participants.

The report's key findings include: 
  • Experts are divided on whether government leaders will make the tough fiscal decisions necessary to save their economies.  In spite of widespread pessimism, some experts believe US leaders could come up with a "grand compromise" and European leaders could move toward greater fiscal and regulatory union. 
  • Viewing the US "fiscal cliff" as a binary event distorts what's likely to happen.  Although the equity markets would likely rebound if lawmakers achieved structural reform, experts agree that the US is likely to experience a fiscal drag in any case.
  • The European economy faces two major uncertainties:   Will European countries ever submit themselves to outside fiscal control? Will the European Central Bank cut off an ailing country from further support if it fails to meet conditions for its loans, thus triggering the type of panic it seeks to avoid?

"While the threat of a return to financial instability may inspire politicians on both sides of the Atlantic to make the difficult political and fiscal decisions that have been avoided for years, our report details a significant divide of opinions on the decisions that will actually be made and the impact of those decisions," said James P. Palermo, vice chairman and CEO of Global Client Management for BNY Mellon.      

The report is a byproduct of BNY Mellon-sponsored Search for Growth research examining the prospects for economic and market growth from the perspective of both institutional investors and corporate executives. Based on a global survey of almost 800 respondents carried out by the EIU in January 2012, and a series of in-depth interviews with leading investors and experts, the research explores the potential for growth across a wide range of sectors, regions and asset classes. It also explores the likelihood and potential impact of a range of both positive and negative scenarios.

Fiscal Decision Time for Political Leaders is available at More on the Search for Growth research initiative is available at

1 of 2

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,035.12 -15.63 -0.09%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,818.94 +8.1520 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs