For three years, the market has suffered from a severe case of economic hypochondria. Headline after headline proclaimed that this time, for sure, the recession would return. Now, some doomsayers are pointing ahead to a “fiscal cliff” in 2013. The supposed cliff is a combination of possible policy changes all happening next year. These include:
- The sunset of the “Bush tax cuts” on regular income, dividends, capital gains, and estates.
- The end of the payroll tax cut.
- The planned cuts to federal spending.