“Markets are due for some swings this week as fears of going over the fiscal cliff will mount as will uncertainty over the November jobs report, but bargains are out there, said Ed Keon, portfolio manager at Quantitative Management Associates.
Talks to steer the economy away from the fiscal cliff — a series of tax hikes and spending cuts due to strike at year-end — have stalled, with Democrats and Republican at odds over extending tax breaks on the wealthy.
The nonpartisan Congressional Budget Office has said failure to address the fiscal cliff could tip the economy into a recession next year.
Fiscal fears aside, the Bureau of Labor Statistics on Friday will release the November jobs report, revealing that Superstorm Sandy will have likely skewed the numbers, adding to the uncertainty considering the proximity of the cliff.
Get ready for a volatile week, Keon told CNBC.
“Sandy is beginning to influence the jobs data and many other sorts of data for the next couple of months … just at a time when the market is uncertain about the fiscal cliff, and the lingering uncertainties about Europe and China and elsewhere,” Keon said.
“Now we have these other uncertainties and the data is going to be less relevant than normal. We are just going to have to adjust.” ”
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