October’s publication summarizes three articles on the fiscal cliff. The first contends that though the threatening fiscal cliff and uncertain public policy have dampened U.S. economic activity, there is potential for a confidence boost and cyclical rally if the election brings about pro-growth tax reform. The second discusses how some capital markets have yet to price in the potential outcomes of the fiscal cliff, and the impact Congress’ timing in addressing the cliff would have. The third considers how election results and scenarios for addressing the fiscal cliff would impact equity sectors.

• “Near-Term Risk, Long-Term Reward?” Barry Knapp et al., Barclays, October 12, 2012
• “The Cliff, the Economy and Capital Markets” Ethan Harris et al., BofA Merrill Lynch, October 17, 2012
• “U.S. Election & Equity Sectors: Policy and Fiscal Realities” Salvatore Ruscitti, MRB Partners, October 16, 2012