After the rough run in the market following the debt ceiling issue in 2011, the experts on Wall Street are advising investors that they need to get ready for another bumpy volatile ride. According to a CNNMoney survey 80% of investment strategists and money managers agree that the next few months will be rough as the market is going to be extremely choppy. In fact they say that it is very likely that the market will be more volatile than last year. John Praveen, managing director and chief investment strategist of Prudential International Investments Advisers, said “In case investors are not sufficiently convinced that policy makers and politicians are up to the task of handling the fiscal cliff in a reasonably effective manner, financial markets are likely to again fall sharply, similar to the plunge around the debt ceiling debacle in 2011.” According to Peter Tuz of the Chase Investment Counsel, trading will most likely be more volatile leading up to the presidential election as investors attempt to predict which tax policies will be enforced and or extended. According to the CNNMoney survey, 75% of the money managers and investment strategists concede that a victory for Romney and a republican controlled congress will be the most ideal outcome for financial markets. The Congressional Budget Office and many economists have already predicted that if the expiring tax cuts and the upcoming spending cuts are put into effect simultaneously that US will most likely fall right back into a recession. As market volatility increases, many investors seek safe havens, for retirement planning annuities can provide that low risk option.
Trae Wieniewitz|Wieniewitz Financial