Sat, May 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

BlackRock, UBS examine fiscal cliff scenarios

Tuesday, October 09, 2012

Bailey McCann, Opalesque New York:

Global financial firms BlackRock and UBS released analyses today that look at what will happen if sequestration is allowed to kick in, in the US. According to report authors at the BlackRock Investment Institute (BII), a 'dangerous disconnect,' exists between professional investors and Washington experts. In recent BII-moderated discussions, Washington insiders predicted political dysfunction will push the nation off the cliff – if only briefly, providing politicians the necessary cover for compromise and a budget deal by fall 2013. However, this is a "dangerous disconnect," BlackRock says. "By contrast, most financial experts believe in an 11th-hour rescue that will enable the country to avoid a recession." With the S&P 500 near record highs, the markets have yet to price in the fiscal cliff "and assume QE infinity will drown out other factors," according to the report.

Report authors note that this expectations gap could create new investment opportunities in a variety of asset classes including - treasuries, munis and dividend stocks. "The country is on the wrong fiscal path. Mathematically, it is pretty easy to change the course through a combination of tax givebacks and spending cuts. Politically, this is very tough to do – unless Washington rediscovers the art of compromise......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven