Topic: How To Invest

What is Pat’s commentary for the week of November 13, 2012

Article Excerpt

In this space last week, I said the Dow Jones Industrial Average could fall another 1,000 points, beyond the 300 points it had already dropped in response to President Obama’s re-election. The next day, it dropped 120 points more. Since then it has flattened out. Note that this wasn’t a prediction. I was setting a limit on how far I felt the market could drop. However, although the market has gone sideways for the past three days, the “fiscal cliff” deadline is the end of the year. (This newly coined term refers to the higher taxes and federal spending cuts that are set to go into force automatically, if the U.S. fails to take action on its federal spending deficit and debt.) The two U.S. political parties have until then to bluster and posture and generally demonstrate to their supporters (particularly their donors) how they are defending their interests. This could make for some scary moments for short-term traders who pay…