Equity market ‘not priced’ for fiscal cliff: Bear Traps Report editor
Lawmakers only have days left to strike a deal, avoid the fiscal cliff
Equity market ‘not priced’ for fiscal cliff: Larry McDonald
The Bear Traps Report founder and editor Larry McDonald on how markets could react if a deal to avoid the fiscal cliff is not reached.
The Bear Traps Report founder and editor Larry McDonald argued the potential fiscal cliff will significantly impact the markets in a negative way if lawmakers don’t vote to avoid it on FOX Business’ "Mornings with Maria."
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LARRY MCDONALD: There's a huge divergence in the market because we're at all-time highs and people have to realize we've done $6.5 trillion of deficit spending the last two years -- 6.5 trillion.
And Republicans and conservative Democrats want to take that down to 1 or 2 trillion. In other words, last year the deficit was 3 trillion total, 3.5. They want to take it down to 1.
That's, you know, $2 to 2.5 trillion fiscal cliff and the equity market is not priced for that. So we have a lot of drama coming the next six weeks as Republicans and Democrats fight this out.
FED EXPECTED TO PROVIDE TAPER TIMELINE HINTS AT KEY POLICY MEETING THIS WEEK
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How fiscal cliff could hurt markets
The Bear Traps Report founder and editor Larry McDonald provides insight into earnings, spending, the markets and China’s Evergrande crisis.