CAPTRUST Chief Investment Officer
Yesterday’s congressional “fiscal cliff bill” (H.R. 8, the American Taxpayer Relief Act of 2012), passed in the early hours of New Year’s Day in the Senate and during the later hours in the House, marks a turning point in what has been a polarizing debate. Among other provisions, the bill extends tax rates for most Americans and postpones sequestration, or automatic spending cuts, for two months. So far, global capital markets—which have been volatile heading into the end of 2012 pending congressional action—are reacting positively as measured by riskier asset class performance. While we see the deal as a short-term positive for investor sentiment, negotiations have not fully addressed budget issues that will cause further debate in coming months. The bill contains some important considerations for CAPTRUST wealth clients, which are outlined on the next page. Despite rampant media attention surrounding this deal, we urge investors to look past the noise and focus instead on the link between their investment objectives and the path they are following to reach those objectives.
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