Europe-While leaders will continue to make an effort to keep Europe intact, the solutions will only be temporary, as they have been since the region’s debt crisis took center stage roughly two years ago.
“They’ll keep coming up with different band-aid proposals that will kick the can further down the road,” said Donald Selkin, chief market strategist at National Securities. “Stocks will go up, then down, and just keep muddling along.”
While support from the world’s central banks and other authorities will provide temporary boosts to the market, investors will continue to view those as incremental steps, still thirsting for a more stable eurozone.
U.S.-Experts say investors will also be skittish leading up to the U.S. presidential elections in 2012, causing volatile trading.
Leading up to November, lawmakers will continue to debate how to handle the onset of big tax increases and spending cuts that will be triggered on Jan. 1 unless Congress acts. While the talks remain gridlocked as Democrats and Republicans dig in their heels, some experts are optimistic that the tone will shift after election.
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