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FISCAL CLIFF and the impact in STOCK MARKETS
After the nervous negotiations between the U.S. Government and the Congrass
during New Year's Eve about the Debt Ceiling
markets are apparently calm
until the new rounf of these negotiations
I'll talk about it to André Massaro, Money Fit's financial educator
How are you, André?
How are you?
Let's see. U.S. Congress in recess to return in the end of January
And February can be very tense
There's few time... Do you think people will leave discutions for the last time?
During this beggining of year, that's all right.
Thinking that this is the first workday of the year
everything shows that they will leave for the last time
This has happened last year when they have discussed the debt ceiling
Happened again now and didn't surprise
everybody knew that it would be left for the last time
the Cliff issue
I don't think it will be different in the third act of this story
So, I'll ask you advice for the investors
In the period pre-discutions and during the discutions between the U.S. Congress and the Government
The main advice I would give to someone this moment
is to do not get excited
Everybody expects it will work
they fight in the Congress and, at in the end, they make the deal
and when the deal happens
we see a great euphoria
this just has happend in the beginning of the year
the stock exchange opening was euphoric
now it's getting flat
the most important thing is that if the deal happens
markets will be euphoric
a very intense and agressive move
we must not get excited
we have to focus on the strategy and, more than this
the strategy made for life
do not get excited by news or these crazy movements
very euphoric moves that usually occur in these situations
until then, it's gonna start the fourth quarter's earnings season
starting with Alcoa, the U.S. giant aluminum producer
Is it possible to generalize? These results should come good or not, André?
Probably. Should reflect certain recovery occurred there last year
Resumption in production, economy
We know their situation
The economy gives some signs of recovery, but not the side that matters
employment, social indicators etc.
There must be not discouraging results
This reinforces the previous idea
the investor should not use this as an excuse to get euphoric
behaving in a very irrational way
The Congress deal probably will happen as the balance sheets wil be released
but one should not leave the investment strategy
André, what about the balance sheets here in Brazil?
Here in Brazil, maybe, less enthusiastic
consequence of our economy's low growth
then we won't have bad results, but is probably they wont come very encouraging
that will comfort investors
Brazil's economy is tied and must continue like this
and it will impact companies
André Massaro, thank you for joining us on La Presse's website.
The first interview about finance in 2013. Thank you!
Your are welcome. It's an honour be here in the first one.
From BM&FBOVESPA's studios, São Paulo, Brazil, I'm Luciene Miranda