Probably not, according to industry executives. But the first year of his second term, 2013, could be momentous, regardless, particularly with the so-called fiscal cliff arriving early on.
"I don't necessarily see the re-election, or should
On the mutual fund side, good times could be back, if the
"I anticipate that, following the political dialogue and compromise in the coming 100 days or about, 2013 would again be an extraordinary growth year for the mutual fund industry," said
Some investors likely will wind up in higher tax brackets with higher taxes, according to Mazza, who recommends tax-free municipal bonds to help address some of those needs.
To generate income, real-estate investment trusts may get a boost as activity picks up in the housing sector. Investments in infrastructure and healthcare also stand to benefit from Obama's reelection, he said.
The value of retirement plans and tax-deferred annuities become much more important when taxes increase, noted
Nachmany expected that though the first quarter may remain "uncertain," the stock market should remain positive for most of 2013. "Clearly specific new tax policies would impact demand for tax-free bond funds, high-dividend stock funds, etc. – but these should unfold over time once such policies are in place," he said.
Other changes? Certain provisions of Dodd-Frank Wall Street Reform Act and the Affordable Care Act (ACA) legislation, while trimmed down, are here to stay, said former MFS Investments chairman
Demand for registered investment advisors is likely to continue, although the
The main concern? The
"The first priority of our elected officials now should be to get this country's fiscal affairs in order to manage our growing national debt,"
That may be. But fund firms also fear that the tax increases and spending cuts enacted to avoid the cliff could drag the U.S. back into a recession.
In fact, the fiscal cliff has already begun "dragging" down economic activity, according to
Investors and consumers could also get wary of their finances going forward, potentially creating more volatility in the markets, the executives contend.
"The fiscal cliff could have the potential to have people focus on the negative risks here and pick up volatility and a rockier path for stocks and other asset categories," Hofschire said. "It's a clear and present danger in the near-term for the U.S. market."
The problem is that reaching a grand bargain agreement will be difficult to say the least, if not nigh impossible, given the ongoing inability of Republican and Democratic lawmakers to compromise or work together.
In general, Republicans prefer spending cuts with no tax increases, while Democrats favor tax increases with minor cuts. And that dynamic hasn't changed with the recent election, these executives note.
Hofschire, however, remained hopeful that a full grand bargain agreement can come to fruition. If it does, that would have a "tremendously positive impact" on businesses.
He stressed that any agreement must address issues such as entitlement spending. Spending on income maintenance,
Also needed are clear plans for rebuilding frayed infrastructure and increasing industrial production, all while balancing the budget.
That means tax reform, Hofschire said, will stay on the table, to reduce complexity of the revenue code and broaden the nation's tax base.
"It could be a catalyst for moving us past the volatility and uncertainty we've seen over the past several years and giving us a clear outlook that the U.S. government isn't going to end up in a debt crisis environment like we've seen in
If uncertainty about the nation's tax code and fiscal outlook get removed, "this could not only put some of business spending into play that's been on hold for the past several months, but the dark cloud of uncertainty will dissipate and you could see a higher level of investing than you've seen at any time since the (credit) crisis," that erupted in 2008, Hofschire said.
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