Clouds in the Horizon

With Moody’s discussing a move to downgrade the US if there is no headway on the deficit reduction deal starts to show the issues that could be mounting at the end of the year.  With a lot of positive short term news out recently, or coming out (think Fed meeting where stimulus is expected) the fiscal cliff issues don’t seem to be of a big concern to many people.  However, once the current news is out and plays its course, there will be a lot of focus towards the end of the year and the next (a common theme come September) which could produce a pullback of mild to extreme severity, depending on the progress of the Fiscal cliff talks.