To go off the cliff or not to go off the cliff? We’ll know by the end of today. What we won’t know, because of the timing of various holidays, is how global financial markets will react. At least not immediately.
I know all eyes are on Washington today in the run up to the 3 p.m. meeting at the White House, but spare part of an eyeball for Europe where the economic bad news points toward a renewed debt crisis later in 2013.
I’m not sure I’d bet the rent money on these markets staying uncorrelated with U.S. market trends in fears over the fiscal cliff surge, but the ability of Japanese and Chinese stocks to move up in the last few days while U.S. stocks sagged on fiscal cliff worries speaks to how powerful the stimulus story is right now in Japan and China.
The topic of this post is simple: The value of cash in uncertainty. You can guess what prompts it: The looming U.S. fiscal cliff. And the uncertainties that accompany it.