2013 Economic Outlook Hinges in Part on Looming Fiscal Cliff

With the election over, much of President Obama and Congress's attention will focus on the $600 billion package of automatic tax increases and spending cuts, scheduled to take effect at the end of 2012, that could severely strain economic growth. Perhaps it rings a bell when referred to as its other name: the fiscal cliff. Obama is expected to demand tax increases for the wealthy as part of a deal to reduce spending to tackle the nation's deficit. Many investors thought that Romney as president-elect would have had a smoother time in negotiations.