And for U.S. markets this year, “winter” could mean a storm of volatility in the form of November elections, a government debt ceiling hit soon after, and the so-called “fiscal cliff” in 2013, as the Bush-era tax cuts come due to expire and several billions of dollars in mandatory budget cuts kick in.
As investors mark the Aug. 5 anniversary of the United States losing its triple-A rating from Standard & Poor’s, they do so in a market that looks deep in summer slumber – a big change from a year-ago.
August and September 2011, market volatility spiked to levels reminiscent of the height of the U.S. financial crisis. By early October, the S&P 500 was flirting with a bear market. The debt downgrade, which came with the warning that more could be in store, followed weeks of watching congressional leaders play chicken with raising the country’s debt ceiling and a feud over a deficit-cutting plan that few deemed deep enough.
The gold and silver markets started the week with high expectations of Mr. Bernanke to announce some kind of specific measure to be taking by the Federal Reserve with regards to QE3 or any form of economic stimuli for the US economy…read more click HERE