(Atlantic) President Barak Obama is returning to the nation’s capital today to this increasingly familiar fiscal cliff deadline showdown in Washington. Lawmakers are daring each party to let the year end without resolving a January 1 confluence of higher taxes and deep spending cuts that could shake a slowly recovering economy.
Mark Smith is with Principal Financial Group in Atlantic and registered Representative for Princor Financial Services.
“I’d be very surprised if they do something before the end of the year, but I think something right after the first of the year, I think they’ll come up with a compromise,” said Smith.
Smith admits the economy has slowly recovered throughout the year.
“We’re up about 8.7 percent from a year ago, the Dow is up a little over 1,000 points from what it began the year at, we’ve definitely been higher this year, but we’ve also been lower at times too, so it’s been a pretty volatile market,” said Smith.
Smith says the economy is driving the market and a continued recovery is hanging on Congress and their ability to compromise and avoid the fiscal cliff.
“It doesn’t have to be done by December 31st, now come January 1 if that hasn’t then these new laws take effect but Congress can still enact a law or come up with a compromise a few weeks later and make it retroactive and I think that’s a very good possibility of what will happen,” said Smith.
Meanwhile, Smith still advises his clients to watch the market and when they see dips in the market it is time to buy.
December 27, 2012