“Investors should avoid growth stocks as long as U.S. debt burdens continue to build, said Daryl Jones, director of research at Hedgeye Risk Management, an independent research firm.
Lawmakers and the White House are scrambling to steer the economy away from the year-end fiscal cliff, a combination of tax hikes and deep spending cuts set to kick in at the same time and tip the country into a recession if left unchecked by Congress.
Over the longer term, however, major fiscal reforms will be needed to address the country’s $16 trillion debt, which should make investors very cautious, as hefty debt loads tend to crimp growth rates…”
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