The first trading day of 2013 ended with big gains after Congressional leaders reached an eleventh-hour deal to end the so-called “fiscal cliff” impasse that loomed over the U.S. economy for much of November and December.
The positive reaction by investors would seem to signal renewed confidence in the economy and may even foreshadow an easing of the conservative hiring practices that many companies have observed since the end of the recesion. Such a development, of course, would be welcome news to commercial real estate markets, particularly within the office sector.
Still, Congress’s deferal (for two more months) of a budget cutting plan and their failure to act on raising the so-called “debt ceilin”g might hold more robust economic growth at bay until those issues are resolved.
As one strategist told The New York Times: “There’s a recognition that this isn’t the end of the game.”