Stocks are saying "Deal." I wonder if we don't have to wait until the stroke of midnight to allow House Republicans to vote for a tax cut to make it all happen.
I have to admit, I am surprised they could pull this off, but I also recognize that this is a non-deal, meaning very little is accomplished. Sticklers who want a more balanced budget will, I think, recognize that almost nothing's being changed.
For the stock market, though, it's unmitigated good news if the suggested outline holds. The bonds tell you as much.
In fact, the deal seems so positive for stocks when it comes to capital gains and dividends that one has to wonder if the sellers come right back as buyers bet that the pause from the fiscal cliff ends quickly.
I remain skeptical that at the last hour something will happen with the Tea Party to derail things, making it a 2013 deal to cover their no-tax-increase butts.
Nevertheless, anything that gets this done, anything that gives certainty, at a time when Europe and Japan are turning around and China's getting stronger by the day is, alas, nothing but net for the bulls.
Random Musings: The deal as configured is great for the minerals stocks and I suspect will be terrific for the autos (Europe coming back, too) and the higher dividend plays that were so heavily sold these last few weeks.
