Even though we expect Congress to find a workaround for at least part of the fiscal cliff, some tax increases and budget cuts will likely take effect, and there will be winners and losers. Less government spending gives the private sector more room to grow and compete, but higher taxes can make it incrementally more difficult for private firms to step up.
However, in our view, the U.S. economy appears well positioned to weather these changes. The UK's experience simply isn't analogous.
Importantly, for investors, U.S. tax increases and spending cuts shouldn't have a lasting impact on global markets. They're too widely known and too localized (not to mention tax changes haven't historically correlated with market returns).
In our view, plenty other global positives should continue pushing this bull market forward.This article was written by an independent contributor, separate from TheStreet's regular news coverage.