| Commentary |
| The markets in the United States moved lower this week after President Barack Obama won a second term in office. Election results showed a divided country that investors fear might not be able to compromise quickly enough to avoid a series of recent laws that will result in tax increases, spending cuts and a corresponding reduction in the deficit – or the so-called “fiscal cliff.” According to the Congressional Budget Office, the sharp reduction in the deficit could increase the risk of another recession happening during 2013, even though it would be positive over the long-term. Global markets reacted in a similar way to the election results, as a slowdown in the U.S. would negatively impact the world’s economies. In Japan, the Nikkei 225 fell from over 9,000 to under 8,750 briefly this week, while the FTSE 100 in Europe didn’t fare much better, falling from ... |
