Wall Street Soars After Fiscal Cliff Deal [AUDIO/VIDEO]
The stock market showed its relief over resolution of the fiscal cliff crisis in a big way on Wednesday.
The Dow closed up 308 points on heavy volume after the White House and Lawmakers agreed to the 11th hour package to avert tax increases and spending cuts most feared would throw the U-S back into recession. Investment strategist Chris Cordaro, of Regent Atlantic Capital in Morristown, says investors really do not like uncertainty.
The agreement on doing away with the fiscal cliff has removed that uncertainty.
But Cordaro warns we’re not out of the woods yet.
He says, “We solved this current cliff, but we are just set up for a couple of more cliff in the future. We have got to get past the debt ceiling.” Cordaro says, “Stay tuned for some more late night negotiations.”
He thinks the level of stock market optimism right now is about the same as it was at this point last year. Today, we are a little bit more optimistic because we have solved the cliff and the market is up.
But Cordaro also says the economic recovery doesn’t get enough respect from investors because this is still a good time to buy stock. He says there will be some pitfalls and there will be volatility in 2013. But Cordaro thinks that overall you are buying stocks at very reasonable valuations, and that should translate into good returns going forward.