Fiscal Cliff: The Great Rotation of 2013


Inform The Pundits!

As if Americans don’t have enough to worry about with the impending fiscal cliff; now there is a greater long-term danger laying in wait in dark financial corners for 2013. Its called the “Great Rotation”!

A ‘great rotation’ is a cyclic general swing by investors away from buying bonds into buying stocks. Sounds innocent enough, but this time will spell big trouble for long-term U.S. federal government debt.

Financial prognosticator’s from Barron’s, to Merrill-Lynch, to Marketwatch, to London’s Financial Times have been predicting its start in 2013 for months now.

There are numerous reasons investors feel the time is ripe for another great rotation.

The Dynamics of a Great Rotation

According to experts the reasoning behind a rotation are quite simple. Stocks become risky for one reason or another, lose money and so skittish investors head for safer investments to prevent losses from volitile or declining stock…

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