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…

View original post 493 more words