What the Fiscal Cliff Deal Means for Investing in 2013
Tags: fiscal cliff deal, investing in 2013, what the fiscal cliff deal means for investing
Stock markets surged on the first day of trading following the scaled-down fiscal cliff deal, but if there was ever a "Band-Aid" fix, this is it.
That's because the deal failed to address three key financial problems.
The debt ceiling, the automatic spending cuts, and an expired budget are all still issues that need to be resolved within the next couple months. If not, the United States will head into a recession in 2013.
Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on CNBC Asia Tuesday to discuss these enormous failures in the fiscal cliff deal.
"Instead of working diligently for the past year on a meaningful overhaul to our taxes and a serious fix to entitlement programs, our leaders dithered, bickered and postured until the last minute," Fitz- Gerald said. "I think it's very irresponsible and an abuse of the public trust."
Fitz-Gerald explained what this rushed deal means for investing in 2013.
Fitz-Gerald warned that individual investors shouldn't do anything rash, but instead stick to their established investing strategies.
In addition to outlining the stocks and sectors that could perform well in 2013, Fitz-Gerald said there's one foreign market to be invested in if you aren't already.
Watch the entire accompanying video to see Fitz-Gerald's 2013 forecast for the Standard & Poor's 500 Index, and some good places for investing in 2013.