Mon, Mar 19, 2018
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. Performance - Hedge fund mojo is back with investor hopes at six-year high, These hedge funds produce the most consistently great results[more]

    Hedge fund mojo is back with investor hopes at six-year high From Hedge funds on the heels of a surprisingly strong performance in 2017 are raising hopes for an encore. Investors expect their managers to return 8.5 percent in 2018, according to a Credit Suisse Group AG sur

  2. Investing - Hedge funds amass big bets against world's leading advertisers, Investor Elliott Management buys tiny stake in Wipro[more]

    Hedge funds amass big bets against world's leading advertisers From Hedge funds have amassed bearish bets of more than $3bn against the world's largest advertising companies in an attempt to profit as the industry undergoes ongoing wrenching disruption and slowing growth. Funds i

  3. News Briefs - Investcorp to launch a $100 million PE fund for Omani pension funds[more]

    Bahrain-based investment firm Investcorp will soon launch a $100 million fund dedicated to Oman's Pension Funds as part of its investment plan. 'The Opportunities Fund' will be focused on private equity investments in the U.S. and Europe and will target mid-sized companies across a broad range of se

  4. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  5. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t