Sat, Feb 6, 2016
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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider