YUP! At least that’s what these two think. I’m still not decided as to whether or not we are going to roll right off the cliff, but I will disagree with one thing that they talk about in this interview…
If we do scream off the edge of this bad boy, I do NOT think that it is currently priced into market. Meaning, I don’t think that we will go off the fiscal cliff, and the market will just hang out around a 12,000+ Dow.
It will drop much, much lower.
Because of human emotion.
You can do all the technical analysis of this thing that you want, but you cannot quantify the emotional factors that come in to play and how people react to the two certainties if it does happen. And that is…
1. Most businesses will have an increase in their taxes.
2. We will likely go back into a recession.
With both of these facts, you might see a big sell off in the next two weeks or so. I honestly doubt that it will happen like that…I actually agree with their comments that a big sell off will likely occur at the beginning of first quarter IF it is to happen, but I think that it will happen to account for the tax ramifications.
Second, I think that the recession will just crush us as this point in time…but I think that it needs to happen.
Do I want the unemployment to occur that will likely ensure?
But I do want people on Wall Street to learn their lessons that have been getting away scott-free over the past 5 years.
I want the every day person that doesn’t think two seconds about their financial situation to start making it a priority in their lives.
I want my friends and family to understand how important it is to diversity their finances and have multiple streams of income.
I want us all to wake up and take responsibility for our lives.
Again, these guys think that we are going off the fiscal cliff.
So the bad news is, we’re probably going over the cliff. The good news, or at least the unknown news, is that there’s still some debate over what’s waiting for us at the bottom. Read more here.
I’m leaning more that way, now, more than ever. But sometimes people surprise us.
Let me know what you think by leaving your comments below.
Until next time…
Dr. Timothy Lawler
P.S. I have always diversified my financial assets through various investments, businesses, and education. This is the system that I use to get extra cash in my pocket monthly to then invest it in other streams of income. Check it out now by entering your email on this page.