Photo: Bloomberg TV
Tom Lee, J.P. Morgan’s top U.S. equity strategist was on Bloomberg’s In The Loop with Betty Liu this morning.Lee, who is widely recognised as one of the more bullish strategists on the street, isn’t letting the upcoming so-called “fiscal cliff” to change his bullish view.
While it is a considerable risk, Lee argued that the downside to fiscal cliff related issues are much less significant and less complicated than the debt downgrade the U.S. economy faced last year.
And things ultimately turned out OK for stocks last year.
The fiscal cliff is the worry that expiring tax cuts and stimulus programs could shave around 3 per cent to 5 per cent from GDP next year.
Lee further argued that politicians on both sides of the aisle fully appreciate the risks of the fiscal cliff. And he’s confident that a resolution will come.
However, he warns it may come at the last minute.