(As of 7:20 am PST)
All markets are in a rally
mode after the passage of legislation that eliminates many of the negative
effects of the fiscal cliff. In a slick
piece of political maneuvering President Obama and the Democrats put the Republican
House of Representatives into a no-win situation, forcing the issue, and resulting in the House approving a
compromise packaged created in negotiations between the President and the
Senate. Key portions of the 'cliff'
remain unresolved, especially the implementation of broad spending cuts, which
were pushed down the road for two months.
The payroll tax holiday was not renewed resulting in a 2% tax increase
for most wage earners. Gold, oil and most commodities are in a major rally,
along with all stock markets. The dollar
is down with a 'risk on' strategy being the order of the day. Volatility is down as well. Economic reports are generally positive this
morning, adding to investor enthusiasm.
