Tags: Kotick | December | rally | 1500

Barclays’ Kotick: December Stock Rally Possible Despite Fiscal Cliff Fears

Friday, 23 Nov 2012 01:19 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Stocks could rally this December despite the possibility that the United States could careen over a fiscal cliff and slide into a preventable recession next year, said Jordan Kotick, global head of technical strategy at Barclays.

Fears lawmakers will be unable to steer the economy away from the fast-approaching fiscal cliff, a combination of tax hikes and spending cuts due to take effect at the end of the year, are not new.

Stocks have fallen on concerns political differences might hamper progress when it comes to tax and spending issues related to the cliff, leaving many analysts to conclude that markets may have already priced in worst-case scenarios, which leaves stocks with room to climb.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

“We’ve come through the worst seasonal time of the year for the equity market, and we are about to head into the best seasonal time for the equity market,” Kotick told CNBC.

“I understand there’s the fiscal cliff. I get it,” Kotick told the network.

“That is known. It’s news that is discounted. I think the market is pricing in compromise.”

Kotick noted that the Standard & Poor’s 500 could reach 1,500 once it breaks through the 1,420 to 1,430 level.

Some policymakers say 2013 is poised to be a good year once issues surrounding the fiscal cliff are resolved, including Federal Reserve Chairman Ben Bernanke himself.

“Currently, uncertainties about the situation in Europe and especially about the prospects for federal fiscal policy seem to be weighing on the spending decisions of households and businesses as well as on financial conditions. Such uncertainties will only be increased by discord and delay,” Bernanke said in a speech at the New York Economic Club.

“In contrast, cooperation and creativity to deliver fiscal clarity — in particular, a plan for resolving the nation’s longer-term budgetary issues without harming the recovery — could help make the new year a very good one for the American economy.”

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved