Barclays Capital just published the findings of massive survey they conducted with their institutional clients.
Perhaps the most surprising finding was how calm investor were with regard to the fiscal cliff: the end-of-year expiration of government programs that threatens to hack off 3 to 5 percentage points of U.S. GDP.
Four out of five investors think the coming fiscal cliff will be resolved before it causes a real threat to the U.S. economy, new data out of Barclays shows.
“Fiscal issues are also becoming more discussed in the media for the US,” the report said, “but the responses to the survey were relatively sanguine on this point.
80-three per cent of investors said the coming tax-cut expirations and spending curtailments would cause market anxieties, but ultimately be solved before causing real economic damage.