Buzz words to scare investors

Investors are constantly barraged from analysis from media outlets. Some of the big buzz words that had ‘experts’ hyperventilating were:

Debt Ceiling Crisis (2011)

Fiscal Cliff  (2012/2013)

Sequestration (2013) — live on your favorite outlets right now

Debt Ceiling (2013) —releasing May on CNBC

The biggest one was the debt ceiling crisis in 2011, which was followed by S&P downgrading the US ratings from AAA. The equity markets sold off quite a bit.  However within a few weeks, the markets recovered strongly and ended higher than the levels before the ‘ceiling’ discussions.

Next after that was the Fiscal cliff post the US Presidential elections in 2012. Nothing much happened there and the US stock market ran up about 6% in January 2013.

Now, ‘Sequestration’ is playing out in media outlets. Let’s see how this one ends.

And the debt ceiling talks will make another appearance around May 2013. Those would be good excuses for a sell off as the markets are near all time highs. Smart investors should have their watch list of stocks ready to capitalize on any bargains.

About Adib Motiwala

Portfolio Manager at Motiwala Capital LLC
This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.