A BofA/Merrill Lynch fund manager survey states that 1/5 managers fear the fiscal cliff more than the current European crisis.This could be from a US-centric view, but it also could be that investors believe that the US fiscal cliff is real and can have a strong impact on equities. The timing of this event is known, so the high level of anxiety will increase as get closer to the cliff. The weight on equities and all risky assets will increase. Profit forecasts will decrease. No monetary policy will be able to safe the market from this uncertainty.
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