My Bet -- We GO Over the Cliff & Senate Democrats Pass a Bill Changing Provisions of Sequester Cuts
Semiconductor companies are trading at prices very close to early 2009.
Other sectors are not that far while the economy is not as weak as 2009.
Can we say that fiscal cliff is already priced in?
Fiscal cliff is something that media has created since one way or another, there will some agreements between two parties. Now, hedge funds that have been behind the curve are purring gasoline on the fire to bring the stocks down so they can get the chip shares. Even if taxes go up by a few percent then investors don't want to pass profits. They may sell but they also buyback.
The small cap may not cover soon but big cap and the company with good record like IBM will be in demand. The big guys are after companies like IBM and CAT and they see this as the best opportunity to grab the shares cheap. IBM is also buying back its shares at these cheap prices. No wonder the smart ones like Buffets have loaded and probably are loading now while there is opportunity to buy those 10% or more below fair value.