gainspainscapital.com / By Graham Summers / December 7, 2012
The market continues to track the same pattern it performed going into the failed debt ceiling talks of July 2011. As you’ll recall, then as is the case now, US politicians failed to reach a credible solution to the US’s debt problems. What followed was a credit rating downgrade and a market collapse:
Here’s the S&P 500’s recent action:
Here’s the S&P 500’s action going into the failed debt ceiling talks of 2011:
Here’s what followed:
Be forewarned. As noted earlier this week there are no political incentives for the GOP or Democrats to propose a real solution to the fiscal cliff. So it is highly likely we will be going over the cliff.