July’s publication summarizes two articles that discuss the impending U.S. fiscal cliff. The first considers that though the case for investing in the United States has improved, investors will want to see more evidence of macro repair globally before doing so. The second delves into the issue that despite state and local governments improving revenues and decreasing their drag on the economy, these governments remain under stress and further deterioration is possible.\

• “The American Dream and the Fiscal Nightmare” Francisco Blanch et al., Bank of America Merrill Lynch, April 2, 2012
• “Fiscal Cliff Diving” Michael Zezas and Julie Powers, Morgan Stanley, May 2012